Latest news with #CESTAT
Business Standard
14-07-2025
- Automotive
- Business Standard
Castrol India jumps on winning Rs 4,131 crore tax dispute
Castrol India jumped 4.39% to Rs 229.65 after winning a Rs 4,131 crore MVAT tax case against the Maharashtra Sales Tax Department. In a regulatory filing, the company disclosed that the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 11 November 2025 ruled in favour of Castrol India, rejecting MSTDs appeals for the assessment years 2007-08 to 2015-16 and for 2017-18. The dispute centered around the taxability of goods transferred by Castrol from its Maharashtra-based plants and warehouses to clearing and forwarding agents (CFAs) in other states. The MSTD had claimed these movements amounted to inter-state sales made against pre-existing customer orders, liable for MVAT. Castrol India had contested the claim, asserting that the dispatches were not based on prior customer orders and adhered to a legally sound tax methodology. The company had already received favorable orders from the MVAT Tribunal for all 10 financial years under dispute. The CESTAT decision brings closure to the appeals made by MSTD for 9 out of those 10 years. For the year 2016-17, MSTD did not contest the order of MVAT Tribunal. Castrol clarified that it had not made any financial provision for the Rs 4,131 crore in dispute, given the remote likelihood of an economic outflow and the presence of supporting industry precedents. Hence, the final ruling is not expected to have any financial implications. Castrol India makes automotive and industrial lubricants. It serves various sectors including automotive, mining, machinery, and wind energy. The company reported consolidated net profit rose 7.96% to Rs 233.46 crore on a 7.3% jump in revenue from operations to Rs 1,422 crore in Q1 CY25 over Q1 CY24.
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Business Standard
14-07-2025
- Business
- Business Standard
Castrol India shares climb 4% after resolving ₹4,131-crore sales tax case
Castrol India share price: Shares of Castrol India experienced a gain of 4 per cent, reaching an intraday high of ₹229.80 on Monday, following a positive verdict from the customs, excise and service tax appellate tribunal (CESTAT). The recent ruling resolves a long-running ₹4,131 crore tax case with the Maharashtra Sales Tax Department (MSTD). At 10:25 AM, Castrol India shares were trading at ₹228.20, up by 3.78 per cent on the National Stock Exchange. In comparison, the Nifty50 continued its range-bound trajectory, quoting 25,120.70. So far this year, the shares of the company have witnessed a decent double-digit rise of 11.6 per cent. As per data from the bourses, nearly 9.9 million shares have changed hands on the counter at the time of writing this report. Castrol India Tax Dispute Castrol India had received a tax demand order amounting to ₹4,131 crore from MSTD for the period 2007-08 to 2017-18. The dispute was centred around the movement of goods from the company's plants and warehouses in Maharashtra to clearing and forwarding agents (CFA) in other states. The MSTD alleged that these were inter-state sales based on pre-existing customer orders in the destination states. The company contested the claim and stated that no prior customer orders existed at the time of dispatch and that its tax practices were "legally valid." "The company received favourable orders from the Maharashtra Value Added Tax Act (MVAT) Tribunal in relation to the matter for all the 10 years. The MSTD however appealed before the CESTAT against the orders for the period 2007-08 to 2015-16 and 2017-18 (9 out of 10 years). For the year 2016-17, MSTD did not contest the order of MVAT Tribunal," Castrol India said in its exchange filing. Castrol new CFO appointment Just last week, the company announced the appointment of its new chief financial officer (CFO), Mrinalini Srinivasan. She replaced Deepesh Baxi, who resigned from the role earlier this year in March to pursue other opportunities. "The appointment shall take effect from 28 July 2025 for a period of 5 years and shall be subject to the approval of shareholders of the company," Castrol India stated in an exchange filing.
Business Upturn
14-07-2025
- Business
- Business Upturn
Castrol India shares jump 3% after company wins Rs 4,131 crore dispute against Maharashtra Sales Tax Department
By Aman Shukla Published on July 14, 2025, 09:41 IST Castrol India shares jumped 3% in early trade on Monday after the company announced a favourable verdict in a long-standing tax dispute with the Maharashtra Sales Tax Department (MSTD), involving ₹4,131 crore under the Maharashtra Value Added Tax (MVAT) regime. n a regulatory update, Castrol India said it received a favourable ruling from the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on July 11, 2025. The case pertained to the period between FY 2007–08 and FY 2017–18, during which the MSTD had alleged that the company's movement of goods from its Maharashtra facilities to Clearing and Forwarding Agents (CFAs) in other states amounted to inter-state sales based on pre-existing customer orders. Castrol India had strongly refuted the claims, maintaining that the goods were not dispatched pursuant to any prior orders, and that its tax practices were fully compliant with applicable laws. The company had already secured favourable orders from the MVAT Tribunal for all 10 years in dispute. However, the MSTD had escalated the matter to CESTAT for nine of those years (excluding FY 2016–17). With the appellate tribunal now dismissing the state's appeals, the matter appears to have been resolved conclusively in Castrol's favour. Importantly, the company clarified that there will be no financial impact from this development, as it had not made any provisions for the ₹4,131 crore in its books, given the remote probability of an economic outflow. Following the update, Castrol India shares opened at ₹224.50 and rose to an intraday high of ₹228.80. At the time of writing, the stock was trading up 3% from the previous close. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
The Hindu
21-06-2025
- Business
- The Hindu
High courts not custodian of revenue department, says Supreme Court; stays Bombay HC order
High courts are not the "custodian" of the revenue department, the Supreme Court has said while dealing with a petition challenging a Bombay High Court order that stayed a tribunal's direction for a refund of ₹256.45 crore to a firm. A bench of Justices Ujjal Bhuyan and Manmohan observed that prima facie, the High Court could not have stayed the order after holding that the appeal filed by the Commissioner of CGST and Central Excise, Belapur Commissionerate, was not maintainable. "A high court is not the custodian of the revenue," the Supreme Court, which stayed the High Court's June 12 order, observed. "Prima facie, the high court could not have passed the order of stay after holding the appeal to be not maintainable and after recording that the writ petition and the appeal are disposed of as not pressed," the bench said in its order passed on June 20. The Supreme Court passed the order while hearing a plea filed by the firm, challenging the High Court order. The bench noted that the high court had disposed of a writ petition as well as an appeal filed by the revenue department. It also noted that the appeal was filed under section 35G of the Central Excise Act, 1944 against a January 2025 order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Mumbai that allowed the Service-Tax appeal of the firm. The Supreme Court said subsequently, the company filed an application for the release of the amount, which was allowed in May. It noted that the high court had recorded in its June 12 order that both the petition and the appeal were "disposed of as not pressed with liberty to the respondent to prefer appeal before the Supreme Court, the High Court has stayed the direction of CESTAT for refund for a period of eight weeks". The bench issued a notice to the revenue department, seeking its response within six weeks on the firm's plea challenging the high court order. "In the meanwhile, impugned order of the high court dated June 12, 2025 shall remain stayed," the bench said. "This order shall, however, not preclude the respondent from filing appeal before this court under section 35L of the Central Excise Act, 1944, if not already filed, which shall be decided on its own merits and/or limitation," the bench said and posted the matter for further hearing on July 2.
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Business Standard
21-06-2025
- Business
- Business Standard
HCs not custodian of revenue department, says SC; stays Bombay HC order
High courts are not the "custodian" of the revenue department, the Supreme Court has said while dealing with a petition challenging a Bombay High Court order that stayed a tribunal's direction for a refund of Rs 256.45 crore to a firm. A bench of Justices Ujjal Bhuyan and Manmohan observed that prima facie, the high court could not have stayed the order after holding that the appeal filed by the Commissioner of CGST and Central Excise, Belapur Commissionerate, was not maintainable. "A high court is not the custodian of the revenue," the apex court, which stayed the high court's June 12 order, observed. "Prima facie, the high court could not have passed the order of stay after holding the appeal to be not maintainable and after recording that the writ petition and the appeal are disposed of as not pressed," the bench said in its order passed on June 20. The top court passed the order while hearing a plea filed by the firm, challenging the high court order. The bench noted that the high court had disposed of a writ petition as well as an appeal filed by the revenue department. It also noted that the appeal was filed under section 35G of the Central Excise Act, 1944 against a January 2025 order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Mumbai that allowed the Service-Tax appeal of the firm. The apex court said subsequently, the company filed an application for the release of the amount, which was allowed in May. It noted that the high court had recorded in its June 12 order that both the petition and the appeal were "disposed of as not pressed with liberty to the respondent to prefer appeal before the Supreme Court, the high court has stayed the direction of CESTAT for refund for a period of eight weeks". The bench issued a notice to the revenue department, seeking its response within six weeks on the firm's plea challenging the high court order. "In the meanwhile, impugned order of the high court dated June 12, 2025 shall remain stayed," the bench said. "This order shall, however, not preclude the respondent from filing appeal before this court under section 35L of the Central Excise Act, 1944, if not already filed, which shall be decided on its own merits and/or limitation," the bench said and posted the matter for further hearing on July 2.
