CEAT Limited has received a favorable Order-in-Appeal from the Commissioner (Appeals), CGST Thane. The appeal concerned a demand of ₹107 crore related to the supply of tubes and flaps as a composite supply under the CGST Act. The order adjudicated the matter in favor of CEAT, deeming it an interpretational matter where proceedings under Section 74 of the CGST Act were not sustainable, thus having no impact on the company’s financials.
Favorable Tax Appeal Ruling for CEAT
CEAT Limited has announced a significant win in its tax appeal proceedings. The company received an Order-in-Appeal from the Commissioner (Appeals), CGST Thane Commissionerate, Mumbai, regarding a previous demand under the Central Goods and Services Tax Act, 2017. This development is reported under Regulation 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Resolution of ₹107 Crore Tax Demand
The appeal involved a tax demand amounting to INR 107 crore. The demand was related to the classification of the supply of Tube and Flap along with Tyre as a composite supply under the CGST Act. In a decisive ruling dated August 26, 2026, the Commissioner (Appeals) adjudicated the matter in favor of CEAT. The order recognized the issue as an interpretational matter and concluded that the proceedings initiated under Section 74 of the CGST Act were not sustainable.
No Financial Impact
The proceedings have been resolved favorably for CEAT Limited, resulting in no impact on the company’s financials, including its Profit & Loss statement, operations, or other business activities. This outcome effectively removes the previously noted tax liability from the company’s financial considerations.
Source: BSE
