The Tamil Nadu Sales Tax Appellate Tribunal (Additional Bench), Chennai, has dismissed six miscellaneous petitions filed by speciality restaurants seeking rectification of earlier orders concerning the levy of value added tax on food and non-alcoholic beverages. The order dated April 27, 2026, affirmed the tribunal's previous common order dated August 28, 2015, and a subsequent order dated March 13, 2017, which had addressed the tax liabilities for the assessment years 2006-07, 2007-08, and 2008-09. The company received the signed order on July 21, 2026.

The petitions, filed under Section 84 of the Tamil Nadu Value Added Tax Act, 2006, challenged the applicable rate of tax under Section 7(1)(a)/7(1)(b) of the Act. The tribunal held that no error apparent on the face of the record existed to warrant the requested rectification. Consequently, the appeals regarding the tax levies for the specified assessment years were rejected.

Speciality Restaurants had deposited the demanded amount of ₹1,71,68,672 with the relevant authorities at the time of filing the petitions. The company confirmed that since this amount stands deposited, the order entails no cash flow impact. The financial impact is limited to the extent of the amount already deposited, and there is no impact on the company's operations or other activities.

The company is currently discussing the matter with its tax advisors to evaluate the order. Speciality Restaurants indicated that it will pursue legal remedies as may be available and advised following this evaluation.

speciality restaurants announced that the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has set aside a service tax demand of ₹7.87 crore through an order dated July 15, 2026. The tribunal ruled in favour of the company, finding no merit in the previously adjudged demands regarding the reversal of CENVAT Credit. This decision resolves a long-standing litigation matter concerning the period from August 2012 to March 2015.

The dispute originated with a show cause-cum-demand notice dated February 18, 2016, issued by the Commissioner of Service Tax, Audit-III, Mumbai. The notice alleged that the company failed to reverse CENVAT Credit as per rules during the specified period. Following an order dated October 31, 2018, which confirmed the demands, the company preferred an appeal at the appropriate levels.

Legal Proceedings and Outcome

The Hon'ble CESTAT reviewed the impugned order dated October 31, 2018. In its final order dated July 15, 2026, the tribunal stated that it did not find any merits in the impugned order insofar as it confirmed the adjudged demands on the company. Consequently, the tribunal set aside the order and allowed the appeal in favour of the appellants.

The disclosure was made to the stock exchanges pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company had initially informed the exchanges regarding the receipt of the notice on February 23, 2016.