Rashtriya Chemicals and Fertilizers Limited (RCF) has successfully appealed tax disputes dating back to the 1996 to 2005 period. The Hon’ble Supreme Court of India, in an order dated March 24, 2026, set aside previous orders from CESTAT and original authorities concerning demands related to Excise and Service Tax. The financial impact of these reversed orders totals approximately ₹32.94 crore in tax liability, interest, and penalties.
Favorable Supreme Court Verdict
Rashtriya Chemicals and Fertilizers Limited (RCF) announced a significant legal victory concerning historical tax disputes. Pursuant to proceedings initiated against various show cause notices and orders from the Customs Excise and Service Tax Appellate Tribunal (CESTAT) covering the period from 1996 to 2005, the Hon’ble Supreme Court of India delivered its order on March 24, 2026.
The Supreme Court order has resulted in the setting aside of the impugned orders-in-original dated 27.01.2010 and 04.02.2010, as well as the order passed by the CESTAT, West Zonal Bench, Mumbai.
Financial Implications of the Reversal
The reversal pertains to demands raised concerning the alleged diversion of Naphtha for use other than fertilizer production. The total financial quantum involved in these set-aside orders is detailed as follows:
- Tax demand (including Excise duty): ₹32.94 crore
- Interest component: ₹18.61 crore
- Penalty component: ₹4.67 crore
This outcome is expected to positively impact the company’s financial standing by eliminating these legacy liabilities related to the specified period.
Source: BSE
