SRF Breathes Easy: ₹852.3 Cr Tax Demand Set Aside in Major Relief

In a significant development for SRF Ltd., the Joint Commissioner of CGST & Central Excise, VadodaraII, has issued an order setting aside a tax demand of ₹852.3 million. The demand had stemmed from the company’s procurement of raw materials from EoU/SEZ suppliers under Advance Authorization between October 2017 and March 2022. Authorities had earlier claimed that SRF was ineligible for IGST refunds on exports made under these authorizations, triggering a tax demand along with an equivalent penalty and interest.

 

However, SRF challenged the legality of the demand, asserting that it was not tenable under prevailing tax laws. The company’s stance has now been vindicated, with the order effectively nullifying the demand and associated penalties. This outcome not only removes a substantial financial overhang but also reinforces SRF’s compliance position in the eyes of investors and regulators.

 

Key Highlights:

This decision marks a crucial win for SRF amid a complex regulatory landscape and underscores the importance of legal recourse in tax disputes.

 

Sources: MarketScreener, Zerodha