Background and Original Demand

  • Company received show cause-cum-demand notice dated February 18, 2016, from Commissioner of Service Tax, Audit-III, Mumbai
  • Notice received by company on February 22, 2016
  • Demand amount: ₹7.87 crore
  • Allegation: Failure to reverse CENVAT Credit as per rules for period August 2012 to March 2015
  • Original disclosure made to exchanges on February 23, 2016

Litigation History

  • Impugned order dated October 31, 2018 confirmed the adjudged demands on the company
  • Company preferred appeal against this order at appropriate levels

Outcome

  • Hon'ble CESTAT, Mumbai passed order dated July 15, 2026
  • Tribunal did not find any merits in the impugned order insofar as it confirmed the adjudged demands
  • Impugned order set aside
  • Appeal allowed in favor of the appellants (company)

Financial Impact

  • Potential liability of ₹7.87 crore plus applicable interest and penalties has been eliminated
  • No financial impact on the company as the demand has been quashed