United Breweries Limited has received a major legal victory, successfully resolving a long-standing tax dispute. Following an order from the Maharashtra Sales Tax Tribunal, the company’s contingent tax liability has been reduced to NIL. This outcome marks the conclusion of a case that initially involved a substantial demand of ₹275 crore for the 2018-2019 financial year, providing significant relief to the company’s financial position.
Favourable Tribunal Ruling
United Breweries Limited (UBL) has announced a positive development regarding a tax matter under the Central Sales Tax Act. On May 11, 2026, the Bench-III of the Maharashtra Sales Tax Tribunal issued a favorable order that effectively nullifies a previously contested tax demand.
Progression of the Dispute
The litigation originated from an assessment order dated March 31, 2023, which imposed a tax demand of ₹275 crore on the company for the financial year 2018-2019. The company challenged this demand through the appellate process. By March 28, 2024, UBL had already achieved a major victory when the First Appellate Authority [Joint Commissioner (Appeals)] reduced the demand significantly to ₹7 crore.
Final Resolution
Following the company’s appeal to the Tribunal to defend the order passed by the Joint Commissioner (Appeals), the final ruling has now confirmed that the liability is reduced to NIL. This development eliminates the remaining contingent liability, reinforcing the company’s fiscal standing and resolving the uncertainty surrounding this specific tax assessment.
Source: BSE
