MOIL Limited Wins GST Appeal, ₹55–58 Crore Tax Demand Quashed by Appellate Authority
New Delhi February 21, 2026: MOIL Limited has received significant relief after the appellate authority ruled in its favour in a GST dispute case involving a tax demand of approximately ₹55–58 crore.
In a regulatory filing under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company informed stock exchanges that the Commissioner (Appeals), CGST & Central Excise, Bhopal has set aside the earlier order confirming GST demand under the reverse charge mechanism (RCM).
Background of the Case
The matter pertained to GST liability on MPGATSVA paid to the Mining Department of Madhya Pradesh. Earlier, the Joint Commissioner, CGST & Central Excise, Jabalpur had issued an Order-in-Original dated December 13, 2024, confirming:
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GST Demand: ₹2,028.93 lakh
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Equivalent Penalty: ₹2,028.93 lakh
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Interest: Approximately ₹1,500–1,800 lakh
The total risk exposure was estimated at ₹55–58 crore (Tax + Penalty + Interest).
The company subsequently filed an appeal before the Commissioner (Appeals), CGST & Central Excise, Bhopal.
Appellate Authority Ruling
As per the Order-in-Appeal dated January 29, 2026 (received by the company on February 21, 2026), the appellate authority:
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Allowed MOIL’s appeal
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Set aside the impugned Order-in-Original
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Quashed the entire GST demand
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Cancelled the equivalent penalty
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Nullified applicable interest
As of date, no liability survives, subject to any further appeal by the department.
Regulatory Disclosure
The disclosure was submitted to both:
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National Stock Exchange of India
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Bombay Stock Exchange
The opposing party in the case was the Joint Commissioner, CGST & Central Excise, Jabalpur.
Impact on MOIL
The ruling eliminates a substantial financial risk from the company’s books, strengthening its compliance position and reducing contingent liabilities. However, the matter remains subject to further appeal by the tax department, if any.
MOIL Limited, a Government of India enterprise and a leading manganese ore producer, continues to maintain transparency through timely regulatory disclosures.