Elecon Engineering Faces Setback in ₹102 Crore CENVAT Credit Case, Moves Gujarat High Court

Elecon Engineering Company Limited is facing a significant legal challenge after the Commissioner (Appeal) ruled against it in a CENVAT credit dispute for the assessment year 2017–18, disallowing the carry-forward of a disputed credit of ₹10.2019 crore. The order overturns the company’s appeal against an earlier GST Commissioner’s decision, dealing a blow to its indirect tax claim. In response, Elecon has escalated the matter by filing a writ petition in the Gujarat High Court and plans to tag the recent adverse order with its ongoing litigation. The company is contesting the ruling to protect its financial interests and ensure rightful utilization of the credit. While the final financial impact remains uncertain pending the court’s decision, the substantial amount involved highlights the stakes for the gearing industry player. Elecon has maintained transparency by disclosing the development to stock exchanges under SEBI LODR regulations, reaffirming its commitment to compliance. The outcome of this case could have broader implications for CENVAT credit treatment in the manufacturing sector, making it one to watch for investors and industry stakeholders alike. But in the short run, can put pressure on the stock price on bourses.