Fleur Hotels, a subsidiary of Lemon Tree Hotels, said the Central GST Appeals authority in Dehradun partially allowed its appeal against a demand, penalty and interest order. The authority held that interest liability would not arise on the irregular input tax credit in the matter.
BKK Bureau, New Delhi | 17 October 2026 | 9:57 AM IST
Fleur Hotels Limited, a subsidiary of Lemon Tree Hotels Limited, has received partial relief in a goods and services tax dispute after the Office of the Commissioner, Central Goods and Service Tax (Appeals), Dehradun, passed an order in its favour on October 8, 2026. Lemon Tree Hotels disclosed the development to the National Stock Exchange on October 17, citing the appellate order received by the subsidiary on October 16.
The appeal concerned an earlier order issued by the Office of the Assistant Commissioner of Central Tax, Dehradun. According to the exchange filing, that order imposed a demand, penalty and interest on Fleur Hotels under the applicable provisions of the Central Goods and Services Tax Act, 2017. The dispute relates to the period from July 2017 to April 2022.
The First Appellate Authority partially allowed Fleur Hotels’ appeal. A key finding recorded in the company’s disclosure was that liability for interest on the irregular input tax credit would not arise. The filing does not provide the monetary value of the original demand, penalty or interest component, nor does it state whether other aspects of the tax order were fully set aside.
Lemon Tree Hotels said the order was classified as a settlement of proceedings and issued by the regulatory authority identified as the Office of the Commissioner, Central Goods and Service Tax (Appeals), Dehradun. The company also stated that the order has no material impact on its financials or operations because the proceedings relate to its subsidiary.
The company said Fleur Hotels would take appropriate legal action in due course based on an assessment of the facts and prevailing law. The disclosure does not specify the further legal remedy that may be pursued. It also records that the appellate authority’s decision was issued under the company’s disclosure relating to actions taken or orders passed.
What the order means
The appellate decision narrows the tax exposure described in the original proceedings by holding that interest on the irregular input tax credit would not be payable. However, because the appeal was only partially allowed and the filing does not detail the treatment of every component of the original order, the disclosure establishes relief on the interest issue without quantifying the remaining liability, if any.
Why it matters
The order affects a GST dispute involving a Lemon Tree Hotels subsidiary and removes the interest liability identified in the appellate finding. The company has also stated that the matter has no material impact on its consolidated financials or operations.
Source: National Stock Exchange of India
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