Paradeep Phosphates Limited has announced an update regarding its ongoing tax litigation with the State of Odisha. The National Company Law Appellate Tribunal recently dismissed the company’s appeal concerning an Entry Tax exemption claimed under a previously sanctioned rehabilitation scheme. The company has clarified that it has already fully provided for the associated liability in its financial books and currently does not expect any material financial impact on its operations.
Legal Proceedings Update
On May 18, 2026, the National Company Law Appellate Tribunal issued an order rejecting an appeal filed by Paradeep Phosphates Limited. The dispute centers on the company’s claim for a remission of Entry Tax for the period spanning 2007 to 2011. This claim was originally tied to a rehabilitation scheme sanctioned by the BIFR on September 2, 2008, under the Sick Industrial Companies Act.
Financial Standing and Liability
Despite the recent ruling, the company maintains that it is eligible for the tax remission for the period during which it held a sick industrial status. To date, the company has deposited ₹26 crore under protest against a total tax demand of ₹76 crore. The company has already fully provided for the total liability within its books, ensuring that no material impact on its current financial position is anticipated.
Future Steps
Following the dismissal of the appeal, the management of Paradeep Phosphates Limited has confirmed it is actively taking the necessary steps to challenge the tribunal’s decision by filing an appeal before the Supreme Court of India. The company continues to operate as usual while it pursues further legal recourse to resolve this matter.
Source: BSE
