Dalmia Cement (Bharat) Limited (DCBL), a wholly-owned subsidiary, has received an order regarding service tax related to the use of natural river water for industrial purposes. The order imposes a service tax demand of Rs. 10,59,250 and a penalty of Rs. 10,69,250. DCBL intends to contest the order before the Appellate Authority.
Order Details
Dalmia Cement (Bharat) Limited (“DCBL”) has received an order concerning the demand for service tax. The issue relates to the alleged levy of tax on the grant of a license by the State for drawing and using natural river water for industrial purposes. The order was issued by the Commissioner (Appeals), GST, CX & Customs, Bhubaneshwar Commissionerate, Odisha.
Financial Implications and Response
The order specifies a service tax demand of Rs. 10,59,250 and a penalty of Rs. 10,69,250. DCBL believes it has strong grounds to contest this order and plans to file an appeal with the Appellate Authority (CESTAT) within the stipulated timeframe. The order was received on December 27, 2025 at 12:30 P.M.
Limited Financial Impact
The company anticipates that the order will not have a significant financial impact on DCBL, as the impact is limited to the tax liability and penalty amount. DCBL is taking steps to challenge the order and mitigate any potential adverse effects.
Source: BSE
