Home-grown Tata Steel Ltd on Thursday (March 12) said it has approached the Jharkhand High Court to challenge an adjudication order from the Commissioner of CGST & Central Excise, Jamshedpur, seeking payment of ₹493.35 crore in GST along with a penalty of ₹638.82 crore and applicable interest for the period FY 2018-19 through FY 2022-23.
The company filed the writ petition on March 11, 2026, aiming to quash the December 18, 2025, order, citing that its submissions were not fully considered during the adjudication process.
The issue traces back to a show cause cum demand notice (SCN) dated June 27, 2025, in which the Commissioner proposed disallowance of Input Tax Credit under Section 74(1) of the Central GST Act and relevant state GST laws, read with Section 20 of the Integrated GST Act.
The show cause cum demand notice required Tata Steel to show cause as to why GST totalling ₹1,007.54 crore, along with interest and penalties, should not be recovered from the company. Of the total GST demanded, Tata Steel had already paid ₹514.19 crore during normal business operations, leaving a disputed amount of ₹493.35 crore.
Following the show cause cum demand notice, Tata Steel submitted detailed explanations to the Additional/Joint Commissioner of Central GST & Central Excise, Jamshedpur, within the stipulated timelines.
Despite these submissions, the adjudication order issued on December 18, 2025, directed the company to pay the full disputed amount of ₹493.35 crore as tax, a penalty of ₹638.82 crore, and applicable interest.
“The company has evaluated the order passed by the Commissioner of CGST & Central Excise, Jamshedpur, Jharkhand, and it believes that proper cognisance of the submissions made by the Company was not taken while adjudicating the matter.
Further, the company believes that it has a good case on merits and hence, has filed a Writ Petition before the High Court of Jharkhand on March 11, 2026, challenging the Order passed by the Commissioner of CGST & Central Excise, Jamshedpur, Jharkhand, dated December 18, 2025, and seeking quashing of the Order,” it added.
