Details of Litigation
The disclosure concerns an appeal filed by Prism Johnson Limited against an order passed by the Commissioner, Central Excise & Service Tax, Jabalpur. The original order confirmed an Excise Duty demand of ₹11.53 Crores (inclusive of a penalty of ₹6.04 Crores) against the company and its ex-employee. This dispute was initially disclosed on August 14, 2023, under Sr. No. 10 of Annexure 1.
Current Development
The Hon'ble Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has allowed the company's appeals. The tribunal has set aside the entire Excise Duty demand and penalty imposed on the company and its ex-employee.
Financial Implications
The quantum of claims is now nil. The entire Excise Duty demand of ₹11.53 Crores, including the penalty amount of ₹6.04 Crores, has been set aside. There is no adverse operational or financial impact on the company as a result of this order.
Procedural Details
The operative part of the order was pronounced in the open Court on September 7, 2026. The written order is expected to be uploaded on the CESTAT website in due course. The company was informed of this development by their lawyers via email dated September 7, 2026.