Zee Entertainment Enterprises Limited (ZEEL) has announced that the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai has ruled in its favor, dismissing an appeal by the Commissioner of Service Tax – I, Mumbai. The dispute concerned service tax matters, with the order uploaded on October 15, 2025. This ruling has implications on contingent liabilities and the company’s financial standing.
Favorable Tribunal Ruling
Zee Entertainment Enterprises Limited (ZEEL) has received a favorable judgment from the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai. The tribunal has dismissed an appeal from the Commissioner of Service Tax – I, Mumbai, effectively resolving a pending service tax dispute. The order was officially uploaded on October 15, 2025.
Background of the Dispute
The core of the issue involved subscription income from Jammu & Kashmir (J&K), which ZEEL had treated as exempted income under service tax law. The Commissioner of Service Tax – I, Mumbai, had raised objections to the utilization of input tax credit exceeding 20%. ZEEL maintained it kept separate records for J&K and made proportionate credit reversals; therefore, the 20% restriction should not apply. This matter was then escalated to CESTAT.
Impact of the Order
The ruling by CESTAT means that the tax demand, previously disclosed as a Contingent Liability related to Cenvat credit claimed in excess of 20% (Rule 6(3) of Cenvat Credit Rule, 2004) for the financial years 2004-05, 2006-07 & 2007-08, amounting to INR 462 Million, now stands vacated and nullified.
Source: BSE
