On December 1, the tax authority in Tamil Nadu announced that it is dropping the ₹266.3 crore claim of tax and penalties against Dalmia Cement (Bharat) Ltd, the wholly‑owned arm of Dalmia Bharat. The parent company states that this will not affect its finances.
Earlier, Dalmia Cement (Bharat) had received two show‑cause notices from the Sales Tax Officer in Lalgudi, Tiruchirappalli, under Section 74 of the Central Goods and Services Tax Act, 2017, and the Tamil Nadu Goods and Services Tax Act, 2017. The notices flagged “some differences observed in taxable turnover and amount of ITC for the AY 2019‑20 and 2022‑23.” In the ensuing adjudication, the department cleared the company of the proposed demand.
For the 2019‑20 assessment year the tax department had sought ₹128.39 crore in tax along with a ₹19.25 crore penalty. For 2022‑23 it had demanded ₹59.32 crore in tax and an equal amount in penalty. Both of those amounts have now been withdrawn.
Dalmia Cement clarified that the dismissed notices will not place any monetary burden on the company. “Accordingly, there will be no financial impact on DCBL,” the firm added in its filing.
Founded in 1939, Dalmia Bharat is India’s fourth‑largest cement producer, with an installed capacity of 49.5 million tonnes per year.
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