United Breweries has received penalty orders aggregating ₹54.83 crore from the Income Tax Department for assessment years ranging from 2013-14 to 2022-23. The demand stems from penalties levied under sections 271(1)(c) and 270A of the Income-tax Act, 1961.

The company disclosed this development in a filing to stock exchanges on September 29, 2026. The penalties were issued by the Assessment Unit of the National Faceless Assessment Centre (NFAC). United Breweries stated that it does not anticipate any material financial impact, except for a minimal statutory pre-deposit required for appeal admission.

Penalty Breakdown by Assessment Year

The total penalty demand covers seven distinct orders across multiple assessment years. The largest single component relates to AY 2022-23.

Legal Status and Company Response

For most of these assessment years, the underlying assessment orders are already under appeal before the Income Tax Appellate Tribunal (ITAT) or the Commissioner of Income-tax (Appeals). The company noted that the NFAC proceeded to levy penalties on issues that remain pending for adjudication.

Additionally, United Breweries highlighted specific procedural errors in the penalty orders:

• AY 2014-15: The company claims an excess penalty of ₹43,34,639 was levied due to a mistake apparent on record.
• AY 2017-18: An excess penalty of ₹68,57,670 was allegedly levied due to a similar error.
• AY 2018-19: A duplicative penalty of ₹99,35,764 was imposed despite the same penalty having been levied previously.
• AY 2022-23: An excess penalty of ₹7,55,05,446 was claimed to be levied erroneously.

The company maintains a strong case to defend these matters before the relevant appellate authorities and is pursuing appropriate legal remedies.

United Breweries has secured a favourable order from the Hon'ble High Court of Judicature at Bombay, Bench at Aurangabad, which dismissed an appeal by the Revenue regarding a service tax demand.

The court's decision, received on September 4, 2026, upholds a prior ruling by the Central Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai. The matter concerned Millennium Beer Industries Limited (MBIL), which was amalgamated with United Breweries Limited with effect from April 1, 2010.

Litigation Details

The Revenue had challenged the CESTAT order in the High Court. The dispute involved a service tax demand of ₹21.92 crore for the period between September 2009 and November 2011, along with applicable interest and penalties.

The Commissioner of Central Excise Aurangabad (now Commissioner of Central GST and Service Tax, Aurangabad) contended that MBIL's contract brewing activities during the relevant period constituted "Business Auxiliary Service" and were liable for service tax.

Court Ruling

The High Court dismissed the Revenue's appeal based on two primary grounds:

• The service tax demand was barred by limitation.
• The principle of consistency applied, as the Revenue had accepted a materially identical issue in another comparable case.

As a result of the order, the contingent liability related to this specific demand is reduced from ₹21.92 crore to Nil. The company confirmed there are no claims or compensation payments associated with this proceeding.

This disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Para B(8) of Part A of Schedule III and SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.