NewsEndurance Technologies Secures Relief as Joint Commissioner Sets Aside ₹98.28 Lakh Tax Demand OrderEndurance Technologies Secures Relief as Joint Commissioner Sets Aside ₹98.28 Lakh Tax Demand Order
Endurance Technologies received a favourable appellate ruling on 14th May, 2026, with the Joint Commissioner (ST), Appeals, Chennai-35, setting aside a ₹98.28 lakh demand order for FY2020-21 issued by the Deputy Commissioner (CT), LTU-DC1, Tamil Nadu. The demand had pertained to credit notes issued to customers towards sales return transactions and interest on reversal of input tax credit. The resolution removes the associated contingent liability, as disclosed to stock exchanges on 15th May, 2026.
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Endurance Technologies Limited has received a favourable outcome in a tax dispute, with the appellate authority allowing the company's appeal and setting aside a demand order that had been raised against it. The development was disclosed to the stock exchanges on 15th May, 2026, pursuant to Regulation 30 read with Part A of Schedule III to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Background of the Demand Order
The matter originates from an Order passed by the Deputy Commissioner (CT), LTU-DC1, Tamil Nadu, which was first intimated to the exchanges on 18th February, 2025. The Demand Order pertained to the financial year 2020-21 and involved a total demand of Rs. 98.28 lakh, comprising the disputed tax amount, interest, and penalty. The subject matter related to Credit Notes issued to customers towards sales return transactions and interest on reversal of input tax credit. The key details of the original demand are summarised below:
| Parameter: | Details |
|---|---|
| Issuing Authority: | Deputy Commissioner (CT), LTU-DC1, Tamil Nadu |
| Financial Year: | 2020-21 |
| Total Demand (Tax, Interest & Penalty): | Rs. 98.28 lakh |
| Subject Matter: | Credit Notes issued to customers towards sales return transactions and interest on reversal of input tax credit |
| Original Intimation Date: | 18th February, 2025 |
Appeal Filed and Outcome
Following the issuance of the Demand Order, Endurance Technologies filed an appeal before the Office of the Joint Commissioner (ST), Appeals, Chennai-35, seeking to set aside the order. Upon submission of supporting documents by the company, the appellate authority reviewed the matter and ruled in favour of the company.
The Joint Commissioner (ST), Appeals, vide Order dated 14th May, 2026, allowed the appeal and set aside the aforesaid Demand Order in its entirety. This outcome effectively resolves the tax dispute that had been pending since the original order was passed.
Disclosure and Compliance
The update was communicated to both BSE Limited and the National Stock Exchange of India Limited in accordance with the applicable listing regulations. The disclosure was signed by Sunil Lalai, Company Secretary, Compliance Officer, and Head – Legal (Membership No.: A8078), on behalf of Endurance Technologies Limited, on 15th May, 2026.
The resolution of this demand order removes the contingent liability of Rs. 98.28 lakh that had been associated with the financial year 2020-21 tax proceedings.
Historical Stock Returns for Endurance Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.66% | -7.06% | +8.00% | -3.63% | +4.13% | +70.54% |
Are there any other pending GST or tax disputes for financial years beyond 2020-21 that could result in similar demand orders against Endurance Technologies?
How might this favourable appellate ruling influence the industry-wide treatment of credit notes for sales return transactions under GST regulations?
Could the resolution of this contingent liability positively impact Endurance Technologies' credit ratings or borrowing costs in the near term?
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