Thermax on Wednesday said that the Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside the demand notice worth Rs 1,381.55 crore form excise department against it and group firms.
"In the matter of Thermax Ltd Vs Commissioner of CGST & CE, Pune I, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai Bench, has allowed the appeal of the company by setting aside the demands made for excise duty under Section 4 of Central Excise Act, 1944 on bought-out items supplied to customer along with goods manufactured i.e. boilers, by the company," the company stated in a BSE filing.
The company along with its group firms had received demand notices from the excise department during earlier years for Rs 1,381.55 crore (including penalty but excluding interest), it stated.
These demands are of excise duty payable on inclusion of the cost of bought-out items in the assessable value of certain products manufactured, though such duty paid bought items were directly dispatched by the manufacturers thereof to the ultimate customer, without being received in the factories, it stated.
The company had filed an appeal against the same before CESTAT, Mumbai. CESTAT has allowed the appeal and passed an order in favour of the company, which was received on December 13, 2022, the company said.
The said order is appealable before the appellate authority. There is no financial impact on the company due to the said order, it added.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!