High Court of Karnataka dismisses Department's appeal, upholds CESTAT order passed in company's favour

Company has received an order from the Hon'ble High Court of Karnataka.

Thu 1 Oct 2026

Court Order

Hon'ble High Court of Karnataka dismissed the Department's Appeal No. CEA 34/2024 shared against CESTAT Bengaluru Order No.…

Dispute Period

April 2010 to December 2014

Amount Involved

21,73,76,67,082/- plus interest and penalty

Issue

denial of CENVAT Credit on capital goods used in manufacture of plant and machinery embedded in the earth

Expected Financial Implication

Nil

What the company disclosed

The company has received Order no. NC:2026:KHC:51105-DB (CEA No. 34 of 2024) from the Hon'ble High Court of Karnataka, Bengaluru. The details were given in Form-A, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which covers communication received from a regulatory, statutory, enforcement or judicial authority.

What the order says

• The Department had shared a case in the High Court of Karnataka against CESTAT Bengaluru Order No. 20249/2024, which was passed in the company's favour.
• The High Court dismissed the Department's Appeal No. CEA 34/2024 shared against that CESTAT order.
• By dismissing the appeal, the High Court upheld the CESTAT Bengaluru order issued in the company's favour.

The dispute explained simply

CENVAT Credit is a set-off a business can use against tax it owes, for tax already paid on inputs and capital goods. In this case the issue was the denial of CENVAT Credit the company had availed on capital goods used in the manufacture of plant and machinery embedded in the earth, only on the ground that such plant and machinery constituted immovable property. The dispute pertained to the period from April 2010 to December 2014 and involved an amount of 21,73,76,67,082/- and applicable interest with penalty.

What the company says about the impact

• Expected financial implications on the company: Nil. The company states there is no financial implication on it, as no demand existed subsequent to the favourable CESTAT Bengaluru order.
• Aberrations or non-compliances identified by the authority: None.
• Action taken by the company with respect to the communication: Not required.

What a reader may keep in view

The disclosure records the authority's action, that is, the dismissal of the Department's appeal, and the company's stated position that the order carries no financial implication. The figure of 21,73,76,67,082/- plus interest and penalty is the amount stated as involved in the CENVAT Credit dispute for the period April 2010 to December 2014.

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