JK Lakshmi Cement Limited has announced a favorable outcome from an appellate authority regarding a tax demand. Previously, the company received orders from the Office of the Joint Commissioner of State Tax, Chhattisgarh, for an amount totaling approximately ₹1,715.31 Lakhs for FY 2019-20. These demands primarily related to Reverse Charge Mechanism (RCM) on inter-state purchases, input tax credit disallowances, and other matters. The company had challenged these orders, and the appeal has now been decided in its favor, with the demand set aside.
Tax Dispute Resolution
JK Lakshmi Cement Limited has received a significant favorable ruling from an appellate authority concerning tax demands previously issued. The company had been facing orders from the Office of the Joint Commissioner of State Tax, Durg Division, Chhattisgarh. These orders, dated 29.08.2024 and 30.08.2024, had raised a total demand of ₹879.15 Lakhs for tax, ₹659.35 Lakhs for interest, and ₹87.91 Lakhs for penalty for the financial year 2019-20. The primary issues cited were related to the Reverse Charge Mechanism (RCM) on inter-state purchases, input tax credit disallowances, and other specific matters.
Appellate Authority’s Decision
The Company had formally challenged these aforementioned orders before the appropriate appellate authority. In a positive development announced on 12th June 2026, the appeal has been decided in favor of JK Lakshmi Cement Limited. Consequently, the entire demand raised under the previous orders has been set aside. This ruling provides substantial relief to the company, resolving a significant financial and regulatory matter.
Source: BSE
