Saurashtra Cement Limited has received a show cause notice from the Gujarat Goods and Services Tax authorities demanding ₹29.48 crore for alleged short payments. The notice cites issues related to royalty, DMF, and NMET for the period 2020-21.

The notice was issued by the Office of the Assistant Commissioner of State Tax, Unit-87, Veraval, under Section 74 of the Central Goods and Services Tax Act 2017 and the Gujarat Goods and Services Tax Act 2017. It was directed at Gujarat Siddhee Cement Limited, which merged with Saurashtra Cement Limited pursuant to an order by the National Company Law Tribunal, Ahmedabad Bench, dated March 16, 2023.

Litigation Details

The demand covers tax, interest, and penalties amounting to ₹29,47,85,060. The company is required to respond to the notice before the Assistant Commissioner of State Tax, Unit-87, Veraval, by September 25, 2026. A hearing has been scheduled for September 18, 2026.

Company Stance

Saurashtra Cement Limited stated that the demand is not maintainable based on its assessment. The company is evaluating the matter and intends to submit its reply within the prescribed timeframe. Management indicated that it does not envisage any relevant impact on the financial position, operations, or other activities of the company.

What the Numbers Show

The total demand of ₹29.48 crore comprises tax, interest, and penalties. While the source does not break down these components, the inclusion of interest and penalties alongside the principal tax demand suggests the authorities are seeking compensation for the time value of money and statutory non-compliance costs in addition to the core tax liability for the 2020-21 period.

Saurashtra Cement has re-appointed M. S. Gilotra as Managing Director for a one-year term effective from January 1, 2027, to December 31, 2027. The appointment requires shareholder approval at the upcoming annual general meeting.

The Board of Directors approved the re-appointment on August 24, 2026, based on the recommendation of the Nomination and Remuneration Committee. Mr. Gilotra, aged 76, brings over four decades of experience in the cement industry to the role.

Leadership Profile

Mr. Gilotra is a Mechanical Engineering graduate from BITS Pilani. He previously spent 21 years with Associated Cement Companies Ltd. (ACC) in senior leadership roles, overseeing plant operations and project execution. He has been associated with Saurashtra Cement’s Board since June 1995.

Currently serving as Managing Director, he oversees day-to-day operations and provides strategic leadership. His previous term ran from January 1, 2024, to December 31, 2026, as approved at the AGM held on August 17, 2023.

Regulatory Disclosures

The company disclosed that Mr. Gilotra is not debarred from holding office by SEBI or the Ministry of Corporate Affairs. He is not related to any other director or promoter of the company.