Shree Cement has received a tax demand order from the Assistant Commissioner of Central GST & Central Excise, Pali. The order pertains to the non-payment of service tax, totaling ₹39,19,286, including interest and penalties. The company, having received the notice on May 11, 2026, has stated that it does not expect a significant financial impact. Management plans to contest the demand by filing an appeal within the next two months.
Details of the Tax Order
Shree Cement has been issued an official order demanding payment of ₹39,19,286. This amount represents an alleged non-payment of service tax, supplemented by applicable interest charges and an equivalent penalty amount. The order was formally received by the company on May 11, 2026, from the tax authorities in Pali.
Company Stance and Next Steps
Despite the order, the company maintains that it has a strong case on its merits and does not agree with the contentions raised by the authorities. Because the company believes this matter will not have a major financial or operational impact on its overall performance, it intends to challenge the decision.
Appellate Strategy
To address the demand, Shree Cement has confirmed its intention to file an appeal under section 85 of the Finance Act, 1994. The filing will be directed to the Commissioner (Appeals) and is expected to be completed within the stipulated timeframe of two months from the date of receipt of the order.
Source: BSE
