Zodiac Energy Limited has informed the Exchange about Action(s) taken or orders passed
ZODIAC · price
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Awaiting price reaction for this filing.
The Gujarat High Court has quashed and set aside a GST show cause notice (August 5, 2024) and demand order (February 4, 2025) issued by the Assistant Commissioner of State Tax against Zodiac Energy. The tax department had alleged that the company's composite contracts for supply and installation of solar power generating systems should be treated as 'works contracts' taxable at 18% GST, and had raised demand under Section 74 of the CGST Act (which applies in cases of alleged fraud or suppression), along with interest and penalty. The company contended the supplies were composite supplies taxable at 5% and that there was no fraud or suppression to justify the extended limitation period. The court agreed and quashed both the notice and the order. The company has confirmed there is no financial, operational, or other impact from this development.
Positive for shareholders — the company has won a significant legal battle, removing a potentially large GST liability (CGST, SGST, IGST, interest, and penalty) that had been hanging over it. This removes a key overhang on the stock and removes uncertainty around the tax treatment of its solar installation business.