Ambuja Cements Faces Rs 1.34 Crore Tax Demand, Plans Appeal

Ambuja Cements Limited , a prominent player in the Indian cement industry, has recently received a tax demand order from the CGST Howrah Commissionerate. The order, which disallows Cenvat Credit (Input Tax Credit) and imposes penalties, has prompted the company to announce its intention to appeal.

Order Details

The CGST Howrah Commissionerate has issued an order under section 74(9) of the CGST Act, 2017, citing the disallowance of excess Input Tax Credit availed by Ambuja Cements. The details of the order are as follows:

Particulars	Amount (in Rs.)
Disallowed Cenvat Credit	44,86,249.00
Interest on wrongly availed credit	44,86,249.00
Penalty imposed	44,86,249.00
Total Demand	1,34,58,747.00

Company's Response

Ambuja Cements has stated that it plans to file an appeal against the order before the appropriate appellate authority. The company's stance, as per its disclosure to the stock exchanges, is that it does not foresee any material impact on its financial, operational, or other activities as a result of this order.

Regulatory Compliance

In compliance with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015, Ambuja Cements has promptly disclosed this development to the stock exchanges. The disclosure adheres to the regulatory requirements for transparency in corporate communications.

Investor Considerations

While the company maintains that the impact of this order is not expected to be material, investors and market observers may want to keep an eye on the progress of the appeal process. The outcome of such regulatory matters can potentially influence investor sentiment and the company's financial statements in the future.

Ambuja Cements continues to operate its business as usual, with its registered office located at Adani Corporate House, Shantigram, near Vaishno Devi Circle, S. G. Highway, Khodiyar, Ahmedabad, Gujarat.

As the situation develops, stakeholders are advised to follow official communications from the company for any updates on this matter.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.70%	+2.25%	-1.12%	+4.80%	-0.70%	+114.60%

Ambuja Cements Limited has confirmed that there were no deviations or variations in the use of proceeds from its preferential issue of equity shares for the quarter ended September 30, 2025. The company had raised a total of Rs 15,000.05 crores through a two-tranche preferential issue earlier in 2024.

Preferential Issue Details

Tranche	Date	Amount Raised (in Crores)
Tranche-1	March 28, 2024	6,660.95
Tranche-2	April 17, 2024	8,339.10
Total		15,000.05

Fund Allocation

The raised funds were allocated for various purposes, including:

Capital expenditures
De-bottlenecking capital expenditure
Logistics infrastructure
Digitizing logistics
Optimizing plants for ESG compliance
Acquisitions
Consolidation
Working capital requirements
Technology investment
General corporate purposes

Utilization of Funds

As of June 30, 2025, Ambuja Cements had utilized Rs 14,795.10 crores of the total funds raised. During the quarter ended September 30, 2025, no additional amount was utilized from the preferential issue proceeds.

Audit Committee Review

The statement regarding the use of preferential issue proceeds was reviewed by the company's Audit Committee, ensuring transparency and compliance with regulatory requirements.

This report demonstrates Ambuja Cements' commitment to transparent financial practices and adherence to its stated objectives for fund utilization. The company's strategic allocation of funds across various areas suggests a focus on enhancing operational efficiency, technological advancement, and sustainable growth.