Ambuja Cements has received an order from the Commissioner of Central Excise & CGST, Bhavnagar, disallowing Cenvat Credit (Input Tax Credit) of ₹21,96,26,568 along with interest and a penalty of the same amount. The company is taking legal steps to appeal the order. The disallowed ITC pertains to various services and related activities at Muldwaraka.
Order Details and Financial Impact
Ambuja Cements received an order on September 25, 2025, from the Commissioner of Central Excise & CGST, Bhavnagar, which disallows Cenvat Credit (Input Tax Credit). The total amount disallowed is ₹21,96,26,568. An equivalent penalty of ₹21,96,26,568 has also been imposed. The company is planning to appeal against this order.
Reason for Disallowance
The disallowance pertains to ITC availed on several services including AMC Services, Business Auxiliary Services, Maintenance & repair, Manpower recruitment, mobile phone services, security services, Technical testing and analysis and port related services at Muldwaraka. According to the order, rule 14 of Cenvat Credit Rules (CCR) read with Section 11(A) of the Central Excise Act, 1944 was the basis for disallowing the Input Tax Credit.
Company’s Response
Ambuja Cements is currently taking appropriate steps to appeal against the order. The company does not foresee any material impact on its financial or operational activities due to this order, beyond the immediate financial implications of the disallowed credit and penalty.
Source: BSE
