Shree Cement has received an order from the Commissioner of Central GST & Central Excise, Jodhpur, demanding Rs. 8.31 crore in service tax, plus interest and an equivalent penalty. The company maintains that the order does not have a major financial impact and disputes the demand on its merits. Shree Cement intends to contest the findings and plans to file an appeal with the appropriate Tribunal by July 15, 2026.
Details of the Tax Demand
On April 16, 2026, Shree Cement was served an official order by the Commissioner of Central GST & Central Excise in Jodhpur. The demand centers on the non-payment of service tax, with the total liability including the principal amount of Rs. 8,30,94,582, alongside applicable interest charges and a penalty of equal value to the tax amount.
Management Response and Legal Strategy
Despite the nature of the order, company management has stated that it does not anticipate a significant financial impact on its overall operations. The company strongly disagrees with the contentions raised by the authorities and maintains that it has a robust case based on the merits of the situation.
Next Steps
Shree Cement is currently preparing to challenge the order through formal legal channels. In accordance with the Finance Act, 1994, the company intends to file an appeal before the relevant Tribunal. The deadline for this filing is July 15, 2026, representing a three-month window from the date the order was received.
Source: BSE
