TN Tax Authorities Drop ₹266.3 Cr Demand Notice from Dalmia Cement (Bharat)

In a relief to Dalmia Cement (Bharat) Ltd, a wholly-owned subsidiary of Dalmia Bharat, the Tamil Nadu-based tax authority has dropped the demand of tax and penalties totalling ₹266.3 crore from the company.

In a regulatory filing, Dalmia Bharat said, Dalmia Cement (Bharat) Ltd, had earlier received show cause notices under Section 74 of the Central Goods and Services Tax Act, 2017, Tamil Nadu Goods and Services Tax Act, 2017, from the Sales Tax Officer, Lalgudi, Tiruchirapalli, Tamil Nadu.

The show cause notices pertained to "some differences observed in taxable turnover and amount of ITC for the AY 2019-20 and 2022-23. In the adjudication proceedings, the Department has dropped the proposed demand," the filing added.

The Tamil Nadu tax department had issued notice for Assessment Year 2019-20, where it had demanded a tax of ₹128.39 crore along with a penalty of ₹19.25 crore.

While for AY 2022-23, the department has demanded a tax of ₹59.32 crore, along with a penalty of the same amount.

The Tamil Nadu-based sales tax authority has dropped tax of ₹128.39 crore along with a penalty of ₹19.25 crore for AY 2019-20, and tax of ₹59.32 crore and penalty of ₹59.32 cr for AY 2022-23.

Accordingly, there will be no financial impact on Dalmia Cement (Bharat) Ltd, the filing added.

Founded in 1939, Dalmia Bharat is the fourth-largest cement manufacturer in India, with an installed capacity of 49.5 million Tonnes per annum (MTPA).