Akzo Nobel India is addressing ongoing litigation related to an order from the Telangana GST Department, according to a stock exchange filing made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The company received an Order-in-Appeal on July 31, 2025, following an initial order dated December 31, 2023, from the Telangana GST Department.
The original order concerned a tax demand of ₹21.85 lakhs, comprising ₹19.87 lakhs in tax and ₹1.98 lakhs in penalty, based on a Show Cause Notice dated August 31, 2023. The order referenced the earlier ₹35.61 crores demand under sections 73 and 74 of the CGST Act, 2017/TSGST Act, 2017, along with section 122 of the CGST Act, 2017.
The GST Assessing Officer appealed under Rule 109(1) of the CGST Act, seeking to recover a litigation amount of at least ₹2.9 crore, and interest and penalty; and challenged the relief of ₹35.41 crore (plus applicable interest and penalty) granted earlier.
Akzo Nobel India submitted cross-objections to the Commissioner of Appeals, seeking the dismissal of the Department's appeal.
The Commissioner of Appeals upheld the Department's appeal, including applicable interest and penalties, in an Order-in-Appeal dated July 17, 2025, which the company received on July 31, 2025, at 12:30 pm.
The order allows for further submissions to the relevant authorities, and the company is responding within the specified timeframe.
In the event of settlement of the proceedings, details of such settlement including terms of the settlement, compensation/ penalty paid (if any) and impact of such settlement on the financial position of the listed entity is not applicable.
The aforesaid Appeal Order is allowed for further submissions to the relevant authorities, and the Company is in the process of responding to the same within the stipulated timeframe as outlined in the aforesaid Appeal Order.
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