Aarti Industries Ltd has disclosed a Central Excise duty demand of Rs. 1.97 crore and a penalty of Rs. 0.38 crore from the Surat CGST & Central Excise authority. The company confirms that the financial impact is not material and is preparing to appeal the order. The disclosure was delayed but promptly reported.
Aarti Industries Ltd has received an official order from the Additional Commissioner of Central GST & Central Excise, Surat, dated November 28, 2025. The order pertains to a demand for Central Excise duty amounting to Rs. 1.97 crore, along with applicable interest, and a penalty of Rs. 0.38 crore under the Central Excise Act, 1944. The demand relates to the supply of Di-Calcium Phosphate for the periods February 2015 to December 2015 and January 2016 to May 2017, following earlier Show Cause Notices.
Notable Updates:
-
The company has clarified that the demand (including interest and penalty) will not have a material impact on its financials or operations.
-
Aarti Industries has sufficient legal justification for its claims and is in the process of filing an appeal against the order as per the provisions of the Central Excise Act, 1944.
-
The delay in disclosure was unintentional and was promptly reported once brought to management’s notice.
Major Takeaways:
-
The action is a continuation of previous Show Cause Notices related to excise duty for Di-Calcium Phosphate.
-
The company is confident in its legal position and is pursuing remedies through the appellate process.
-
The disclosure is in compliance with Regulation 30 of the Listing Regulations.
Important Points:
-
The order was received on December 1, 2025.
-
The violation alleged is related to excise duty compliance for Di-Calcium Phosphate supplies.
-
The company’s robust financials and legal stance minimize the operational and financial impact.
Source: BSE Corporate Announcement Aarti Industries Ltd official disclosure.