New Delhi, Dec 1 (NationPress) The tax authority in Tamil Nadu has officially rescinded its demand for taxes and penalties amounting to Rs 266.3 crore against Dalmia Cement (Bharat) Ltd, which is a wholly-owned subsidiary of Dalmia Bharat. This development ensures that the company will not experience any financial repercussions.

In a regulatory filing, Dalmia Bharat clarified that Dalmia Cement (Bharat) Ltd had previously been issued show-cause notices under Section 74 of the Central Goods and Services Tax Act, 2017 and the Tamil Nadu Goods and Services Tax Act, 2017 by the Sales Tax Officer in Lalgudi, Tiruchirapalli, Tamil Nadu.

The notices were related to discrepancies found in taxable turnover and ITC amounts for the assessment years 2019-20 and 2022-23. According to the filing, the department has now abandoned the proposed demand.

For the assessment year 2019-20, the Tamil Nadu tax department had initially demanded a tax of Rs 128.39 crore along with a penalty of Rs 19.25 crore. In the same manner, for the assessment year 2022-23, a tax of Rs 59.32 crore was also demanded, accompanied by a similar penalty.

Consequently, the sales tax authority has revoked the tax demand of Rs 128.39 crore and a penalty of Rs 19.25 crore for 2019-20, as well as the tax and penalty of Rs 59.32 crore for 2022-23.

Dalmia Cement has reiterated that these notices will not affect the company's financial standing. While the company did not provide specifics on how the issue will be resolved, it expressed confidence that there would be no financial burden as a result of the notices. The filing concluded with the assertion, “As a result, there will be no financial impact on DCBL.”

Founded in 1939, Dalmia Bharat stands as India’s fourth-largest cement producer, boasting an installed capacity of 49.5 million tonnes per annum.