VIP Industries Ltd on Wednesday (December 18) said it has received a favourable ruling from the Maharashtra Sales Tax Tribunal, Mumbai, in a dispute involving assessments under the Central Sales Tax Act, 1956.
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“…we would like to inform that the Company has received an order in its favour from Maharashtra Sales Tax Tribunal, Mumbai (the Order) under Section 18A of Central Sales Tax Act 1956 (“the Act) on 17th December 2024, towards the appeals filed against the various assessment orders passed by Assessing officer under the said Act,” VIP Industries said in a regulatory filing.
The tribunal’s decision pertains to financial years 2009-10 to 2016-17 and a part of 2017-18, addressing disallowed branch transfer claims and related tax levies. The tribunal set aside the assessment orders issued by the assistant/deputy commissioner of sales tax and upheld VIP Industries’ claims for stock transfers.
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The case has been remanded to the assessing authority for recalculating the tax liability, incorporating the allowed claims. The contingent liability associated with the litigation, reported as ₹357.56 crore in the company’s financial statements as of March 31, 2024, may now see a significant reduction following this favourable ruling.
“The company has received an order in its favour from the Maharashtra Sales Tax Tribunal, Mumbai for the abovementioned litigation. The said litigation was duly reported as a contingent liability in the respective financial statements and the related amount of contingent liability as of March 31, 2024, was at Rs 357.56 crores,” it said.
Shares of VIP Industries Ltd ended at ₹482.35, up by ₹5.25, or 1.10%, on the BSE.
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