Allied Blenders & Distillers Limited (ABDL), a prominent player in the Indian spirits industry, has received a significant tax relief following a favorable appellate order. The Deputy Commissioner of State Tax, Thane, has extinguished a ₹14.98 crore Central Sales Tax (CST) demand that covered the financial years 2020-21 to 2023-24.

Tax Demand Background

The tax demand originated from assessments conducted by the Office of Assistant Commissioner of State Tax, Thane Rural Division, Bhayandar, Maharashtra. ABDL received orders raising a demand of ₹14.98 crores, along with applicable interest, under the Central Sales Tax Act, 1956.

Reason for Initial Demand

The primary reason for the tax demand was the non-availability of C/F Forms at the time of assessment. These forms are crucial for interstate sales and help in availing concessional tax rates or exemptions under the CST Act.

Company's Response and Appeal

Allied Blenders took prompt action upon receiving the tax demand. The company successfully obtained the required C/F Forms and filed appeals before the Deputy Commissioner of State Tax (Appeals), Thane Rural Division, Bhayandar, Maharashtra.

Favorable Appellate Order

ABDL received the orders on their appeals. The Deputy Commissioner of State Tax (Appeals) ruled in favor of the company, effectively extinguishing the entire tax demand of ₹14.98 crores.

Implications for Allied Blenders

This favorable ruling brings significant relief to Allied Blenders & Distillers Limited. The extinguishment of the ₹14.98 crore tax demand eliminates a substantial financial liability for the company, potentially improving its financial position and reducing tax-related uncertainties for the periods FY 2020-21 to FY 2023-24.

Disclosure Compliance

In compliance with regulatory requirements, Allied Blenders has duly informed the stock exchanges about this development. The company's disclosure aligns with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This favorable outcome for Allied Blenders underscores the importance of maintaining proper documentation and pursuing legal recourse in tax matters. It also highlights the potential for companies to successfully challenge tax demands when they can provide the necessary supporting evidence.

Allied Blenders & Distillers Limited (ABDL), a prominent player in the Indian spirits industry, has received a significant update in its ongoing legal dispute. The Supreme Court of India has disposed of Special Leave Petitions filed by ABDL and other parties, setting a clear path forward for the resolution of the case.

Supreme Court's Directive

The apex court has issued a directive to the trial court, mandating the conclusion of the suit and counter-claim within a six-month timeframe. This decision comes as part of the case involving Herman Jansen Beverages Nederland B.V. and others versus Tilaknagar Industries Ltd.

Key Points of the Order

• Timeline: The trial court is instructed to conclude the trial within six months from the next hearing date.

• Impartiality Ensured: The Supreme Court clarified that observations made in the High Court's interim order should not influence the trial court's decision.

• Merit-Based Judgment: The trial court is directed to decide the suit and counter-claim based solely on the evidence presented and the merits of the case.

• Expedited Process: If necessary, the trial court may conduct hearings on a day-to-day or week-to-week basis to meet the deadline.

• Rectification Applications: The court stated that applications for rectification filed by both parties will be considered separately on their own merits.

Implications for Allied Blenders

This development is crucial for Allied Blenders and Distillers Limited, as it provides a clear timeline for the resolution of the legal dispute. The company will likely be watching the proceedings closely as they unfold over the next six months.

Looking Ahead

As the case moves to the trial court, all eyes will be on the proceedings and their potential impact on Allied Blenders and Distillers Limited. Stakeholders and industry observers will be keenly awaiting the outcome of this legal battle, which could have far-reaching consequences for the company and the broader spirits market in India.

The company has assured its stakeholders that it will keep them informed of any further developments in this matter, in line with its obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.