SRF Limited announced receipt of a demand order from the Additional Commissioner of CGST and Central Excise concerning the period 2005-2011. The tax authority has demanded ₹1,03,10,343, plus an equal amount in penalty and applicable interest, for the disallowance of certain CENVAT credits claimed previously. The company is currently examining the order and plans to pursue all appropriate legal remedies, stating it does not anticipate any material adverse impact beyond the disclosed amount.
Disclosure of Regulatory Action
SRF Limited has disclosed a significant communication received from tax authorities regarding historical tax claims. The disclosure was made pursuant to regulatory requirements concerning obligations and disclosure requirements on March 31, 2026.
Details of the Tax Authority Order
The communication originated from the Additional Commissioner of CGST and Central Excise- Chennai North Commissionerate.
The core issue involves the disallowance of CENVAT credit availed by the Company over the past assessment period.
- Period of Alleged Contravention: The actions pertain to claims made between 2005 to 2011.
- Demand Amount: The tax authority issued a demand order for Rs. 1,03,10,343.
- Penalty and Interest: An equal amount as penalty, along with applicable interest, has also been demanded by the department.
- Receipt Date: The order was officially received by the company on March 30, 2026, at 11:24 a.m.
Company Response and Impact Assessment
SRF Limited is actively reviewing the details of the demand order. Management has confirmed its intention to take necessary steps, including pursuing appropriate legal remedies by filing an appeal in due course.
Crucially, the management does not expect this issue to result in any material adverse impact beyond the amount disclosed, indicating the quantification of exposure is limited to the figures stated in the order.
Source: BSE
