United Breweries Limited has received a favourable order from the Hon’ble High Court of Judicature at Bombay, Bench at Aurangabad. The court dismissed the Revenue’s appeal, effectively setting aside a Service Tax demand of ₹21.92 crore, along with applicable interest and penalties. This outcome stems from a litigation concerning contract brewing activities from September 2009 to November 2011, now deemed barred by limitation.
High Court Rules in Favour of United Breweries on Tax Matter
United Breweries Limited announced today that it has received a favourable Order from the Hon’ble High Court of Judicature at Bombay, Bench at Aurangabad, concerning a significant tax litigation. This ruling effectively dismisses the Revenue’s appeal, resolving a matter that had presented a contingent liability for the company.
Litigation Details and Outcome
The case involved a Service Tax demand of ₹21.92 crore, plus applicable interest and penalties, related to contract brewing activities undertaken by Millennium Beer Industries Limited (which was later amalgamated with United Breweries) during the period of September 2009 to November 2011. The Revenue had contended that these activities constituted ‘Business Auxiliary Service’ and were liable to Service Tax.
In its Order dated September 04, 2026, the Hon’ble High Court upheld the earlier favourable order passed by CESTAT, Mumbai. The Court determined that the Service Tax demand, along with the associated interest and penalties, was barred by limitation. Furthermore, the Court cited the principle of consistency, referencing the Revenue’s acceptance of a materially identical issue in another comparable case.
Financial Implications
As a direct result of this favourable ruling, the expected financial implications for United Breweries, in terms of tax demand or contingent liability, have been reduced from ₹21.92 crore to Nil.
Source: BSE
