Aarti Industries has received an order regarding Central Excise duty amounting to ₹1.97 crores, along with applicable interest. The order also includes a penalty of ₹0.38 crores. The order follows previous Show Cause Notices and pertains to the supply of Di-Calcium Phosphate. The company believes the order will not have a material impact on the financials or operations.
Order Details
Aarti Industries received an order from the Additional Commissioner of Central GST & Central Excise, Surat on December 1, 2025. The order, dated November 28, 2025, pertains to Central Excise duty.
Financial Implications
The order includes a demand for Central Excise duty of ₹1.97 crores under Section 11A(1) of the Central Excise Act, 1944, along with applicable interest. Additionally, a penalty of ₹0.38 crores has been imposed under Rule 25 of the Central Excise Act 1944 read with Section 11AC(1)(a) of the Central Excise Act, 1944.
Background
The order is a continuation of Show Cause Notices received by the company on February 4, 2016 and January 18, 2018. These notices demanded Central Excise duty of ₹1.32 crores and ₹0.93 crores respectively, related to the supply of Di-Calcium Phosphate.
Company Response
Aarti Industries believes that the demand raised by the Authority will not have a material impact on the financials or operations of the company. The company is in the process of filing an appeal against this Order as per the applicable provision under the Central Excise Act, 1944.
Source: BSE