Image Source: ET Now
Suzlon Energy’s ₹101.92 crore tax liability has been cleared after the Hon’ble CESTAT, Mumbai, ruled in its favor on December 10, 2025, eliminating the penalty and resolving a long-standing dispute over service tax on design and drawings imported between 2007–2011.
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Suzlon Energy Limited has secured a significant legal win in its long-running tax dispute, with the Hon’ble CESTAT, Mumbai, ruling in its favor and reducing a penalty of ₹21.92 crores to nil. The decision, announced on December 10, 2025, effectively brings down the company’s contingent liability by ₹101.92 crores, offering substantial relief and clarity on its financial obligations.
Notable Updates
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The dispute stemmed from the classification of designs and drawings imported under Product Development & Purchase Agreements during 2007–2011, with the Commissioner of Central Excise and Service Tax, Pune-III, imposing a service tax and penalty.
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Suzlon Energy challenged the levy on both merit and limitation grounds before the Hon’ble CESTAT, Mumbai, after the matter was referred back by the Supreme Court.
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The tribunal’s order dated December 10, 2025, accepted the company’s submissions, reducing the penalty to zero and ruling in its favor on all counts.
Major Takeaways
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The ruling eliminates the penalty of ₹21.92 crores and reduces the contingent liability by ₹101.92 crores.
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The decision is based on both substantive legal arguments and procedural time limitation grounds.
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This resolution removes a key uncertainty from Suzlon Energy’s financial reporting and enhances investor confidence.
Important Points
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The company had disclosed the contingent liability in its Integrated Report for the quarter ended September 30, 2025.
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The disclosure was made in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency for all stakeholders.
Source: NSE Corporate Announcement, Suzlon Energy Ltd. official disclosure, PSU Connect, Scanx Trade
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