BHEL Share Price Gains Over 2% After Receiving Adjudication Order from Telangana Tax Department

Bharat Heavy Electricals Limited (BHEL) has been informed of an adjudication order from the Assistant Commissioner (ST) at the Commercial Tax Department in Telangana. This order pertains to a previous demand raised for the fiscal year 2021-22. 

Details of the Adjudication Order 

The adjudication order, dated December 31, 2025, was received by BHEL on January 1, 2026. It addresses a demand initially raised through a Show Cause Notice for the fiscal year 2021-22, amounting to ₹184.55 crore.  

The Adjudicating Authority ruled in favour of BHEL, dropping the demand of ₹183.77 crore, including interest and penalty. 

Financial Implications and Company Response 

BHEL has stated that there are no expected financial implications from this order, as the case is strong on merits.  

However, for the remaining balance demand of ₹1.43 crore, which includes a demand of ₹0.78 crore, interest of ₹0.58 crore, and a penalty of ₹0.07 crore, BHEL plans to file an appeal before the Appellate Authorities. 

Non-Compliance Identified 

The communication from the tax department identified non-compliance related to the export of goods beyond the prescribed time period. BHEL maintains that the case is strong on merits, as the export has already been completed. 

Read More: Britannia Industries Share Price in Focus; Gets GST Order Demanding ₹108.50 Crore for FY19-FY24! 

Penalty and Actions Taken 

A penalty of ₹0.07 crore has been imposed as part of the communication. BHEL has decided to appeal against the balance demand of ₹1.43 crore, asserting the strength of their case on merits. 

Bharat Heavy Electricals Share Price Performance  

As of January 02, 2026, at 2:25 PM, Bharat Heavy Electricals share price on NSE was trading at ₹298.60 up by 2.45% from the previous closing price. 

Conclusion 

The adjudication order from the Telangana Commercial Tax Department has resulted in a significant reduction of the initial demand against BHEL. While the majority of the demand has been dropped, BHEL is set to appeal the remaining balance, reinforcing their position on the matter. 

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