Intimation of order of GST against show cause notice, order received on 07.04.2026 at 8:01 pm
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
VMS Industries Ltd has received a GST order from the Joint Commissioner, Central GST, Bhavnagar in connection with a show cause notice against Mahalaxmi Steel & Tube Traders. The investigation found that VMS Industries was involved in circular trading with related parties (Rajendra Ship Breakers Pvt Ltd and Rajendra Recyclers LLP) involving fake invoices without actual supply of goods. The order confirms tax demand of Rs 7.65 crore and penalty of Rs 15.30 crore, totaling Rs 22.94 crore (approximately 7.95% of FY2024-25 turnover). Inspections found no actual ship engines at any premises, and transporter statements confirmed only scrap was moved. The company states it has adequate grounds to contest and will file an appeal within 90 days.
The penalty represents nearly 8% of annual turnover and involves allegations of participation in fraudulent circular trading. While the company claims no material operational impact and plans to appeal, the fraud findings could attract regulatory scrutiny from other authorities including potential SEBI involvement.