Prism Johnson secured a full legal victory in an ongoing tax dispute, with the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) setting aside a demand of ₹11.53 crore. The ruling, pronounced on September 7, 2026, eliminates any potential financial liability for the company.

The tribunal disposed of appeals filed by Prism Johnson against an order passed by the Commissioner, Central Excise & Service Tax, Jabalpur. The original order had confirmed an excise duty demand of ₹11.53 crore, which included a penalty of ₹6.04 crore. This litigation was initially disclosed by the company on August 14, 2023.

Litigation Details

The CESTAT New Delhi bench allowed the company's appeals in their entirety. The operative part of the order was read out in open court on September 7, 2026. While the written order is expected to be uploaded to the CESTAT website in due course, the immediate effect is the complete nullification of the claimed amount.

Financial Implications

Prism Johnson stated that there is no adverse operational or financial impact resulting from this development. The company had previously highlighted this dispute in its Integrated Governance Reports as part of its ongoing tax litigations disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The resolution removes a contingent liability from the company’s records. As the entire demand has been set aside, no compensation or penalty payment is required. The company secretary, Shailesh Dholakia, confirmed the details in a filing dated September 7, 2026.

The Commissioner (Appeals) CGST, Excise & Service Tax, Bhopal, has set aside a ₹22.70 crore Goods and Service Tax demand raised against Prism Johnson and its employees. The order, dated September 3, 2026, disposes of the appeals filed by the company in their entirety.

The demand originally included a penalty of ₹11.35 crore imposed by the Addl. Commissioner CGST & Central Excise, Jabalpur. The company had initially disclosed this litigation on August 14, 2023, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Litigation Outcome

The appeals were filed against an order confirming the tax demand listed as Sr. No. 9 in Annexure 1 of the initial disclosure. The Commissioner (Appeals) received the company's appeals and subsequently issued the order setting aside both the tax demand and the associated penalties.

The company received the official order via email on September 7, 2026. The disclosure was made pursuant to Regulation 30 read with Clause 8 of Para B of Part A of Schedule III of the SEBI LODR Regulations, 2015, and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Financial Implications

The resolution of this litigation carries no adverse financial or operational impact for Prism Johnson. The total quantum of claims is now nil, as the entire demand including penalties has been vacated.

Shailesh Dholakia, Company Secretary and Compliance Officer, signed the disclosure letter addressed to the National Stock Exchange of India Ltd. and BSE Limited.