- 15 Dec 2022
- ICICIdirect Research
TAX TRIBUNAL SETS ASIDE RS 1,381-CRORE EXCISE DUTY DEMAND AGAINST THERMAX, GROUP FIRMS
The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside the demand notice worth Rs 1,381.55 crore form excise department against it and group firms. These demands are of excise duty payable on inclusion of the cost of bought-out items in the assessable value of certain products manufactured, though such duty paid bought items were directly dispatched by the manufacturers thereof to the ultimate customer, without being received in the factories. The company had filed an appeal against the same before CESTAT, Mumbai. CESTAT has allowed the appeal and passed an order in favour of the company, which was received on December 13, 2022, the company said.
There is no financial impact on the company due to the said order. However, it is sentimentally positive for Thermax.