JSW Dulux CESTAT Appeal Wins Rs 32.4 Lakh Demand Annulment

Litigation Background

The dispute concerned a Central Excise duty demand originally proposed by the CESTAT Department. The initial demand was Rs. 1.59 crore along with applicable interest and penalty, based on differences between sales reported by the Company in the P&L and ER-1 returns.

Adjudication Outcome

After adjudication, the demand was significantly reduced to Rs. 32,41,768, comprising:

• Tax: Rs. 16,20,884
• Interest: As applicable
• Penalty: Rs. 16,20,884

Appeal Process

The Commissioner (Appeals), CGST & CEX, Belapur, Navi Mumbai, rejected the Company's appeal and passed an order on 15th January 2025. The Company subsequently filed an appeal before CESTAT, Mumbai against this order, submitting necessary supporting documents within the prescribed time limit.

Final Order Details

CESTAT, Mumbai issued Final Order No. A/85956/2026 dated 31st July 2026, which was received by the Company on 17th August 2026 at 9:45 am. The order:

• Set aside the impugned Order
• Allowed the appeal in favor of the Company
• Set aside the entire demand aggregating to Rs. 32,41,768 (comprising Tax Rs. 16,20,884; Interest as applicable; and Penalty Rs. 16,20,884)

Financial Impact

The demand under the adjudication Order stands annulled. There is no further liability arising from this Order for the Company.