Tax demand reduced from Rs. 91.53 crores to Rs.36.19 crores after rectification order

Update in an indirect tax matter: CST assessment dispute for FY 2014-15, earlier disclosed on 14 August 2023 with Rs. 91.53 crores involved.

Wed 7 Oct 2026

Earlier Demand

Rs. 91.53 crores

Reduced Demand

Rs.36.19 crores

Rectification Order Date

30.09.2026

Tax demand in a sales tax matter reduced: What the update says

The company has shared an update on a long-running indirect tax dispute.

• The matter relates to CST assessment for the financial year 2014-15 and concerns export clearances and declaration Forms under sales tax.
• It was earlier disclosed on 14 August 2023 as a material litigation pending before the Deputy Commissioner, Commercial Taxes, Kottayam, with Rs. 91.53 crores involved.
• On the Rectification Application shared by the company on 29.04.2021, the Deputy Commissioner State Tax, Pala, Kerala passed a rectification order dated 30.09.2026, received by the company on 06.10.2026.
• That order reduces the total demand from Rs. 91.53 crores to Rs.36.19 crores.
• The company states it is examining the order and will take an appropriate decision to challenge the demand.

What a rectification order means

• A rectification order is a correction, by the tax authority, of an order passed earlier. In this case the correction has lowered the amount demanded.
• A demand is an amount the tax authority states is payable; it is not the same as an amount already paid.
• The company has said it will take an appropriate decision on challenging the demand, so the dispute continues and this order is not the final word on the matter.

What changed here

• The size of the demand in this matter has come down, from Rs. 91.53 crores to Rs.36.19 crores.
• Everything else in the company's communication describes the same 2014-15 CST assessment matter that was disclosed earlier.

What to watch

• Whether the company files a challenge against the reduced demand of Rs.36.19 crores, and any further orders in the matter.
• For a retail investor, the relevant point is the change in the amount the company faces as a demand in this case, since such amounts are tracked as a contingent liability.

In short

• A tax demand of Rs. 91.53 crores has been reduced to Rs.36.19 crores through a rectification order dated 30.09.2026.
• The company is examining the order and will take an appropriate decision on challenging the demand.

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