Akzo Nobel India Limited has received a favorable resolution in its pending litigation with the Gujarat GST Department, with the tax authority completely dropping a demand of ₹4.36 lakh including interest and penalty. The company informed stock exchanges about this development on December 26, 2025, following receipt of the order from the Gujarat GST Department.

Case Background and Timeline

The litigation originated from a show cause notice issued by the Gujarat GST Department on June 27, 2025, concerning the period from April 2018 to March 2019. The notice alleged issuance of duplicate e-way bills against the same invoice under Section 74 of the CGST/SGST Act, 2017.

Company Response and Resolution

Akzo Nobel India responded to the show cause notice along with supporting documents within the prescribed time limit. The Superintendent of Ahmedabad Gujarat GST Department reviewed the company's reply and supporting documentation before issuing the final order.

The order dated December 23, 2025, was received by the company on December 26, 2025, at 12:30 PM. According to the order, the tax demand including interest and penalty has been completely dropped, providing full relief to the company.

Financial Impact

Regulatory Compliance

The company disclosed this update under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in compliance with SEBI circular SEBI/HO/CFD/CFDPoD1/P/CIR/2023/123 dated July 13, 2023. This follows the company's earlier disclosure on June 28, 2025, when the initial show cause notice was received.

The resolution of this matter eliminates any potential financial liability for Akzo Nobel India related to the alleged duplicate e-way bill issuance during the specified period. The company's proactive response with appropriate supporting documentation appears to have successfully addressed the department's concerns, resulting in the complete withdrawal of all demands.

AkzoNobel India Limited has informed stock exchanges about receiving a GST notice from Tamil Nadu authorities, disclosing potential financial implications of ₹5.20 lakh. The company made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

GST Notice Details

The notice was received from the Deputy State Tax Officer, Vellore, Roving Squad of the Tamil Nadu GST Department. The authorities issued the notice under Section 68 of the CGST Act/Rules, 2017 following a physical verification of transport documents.

Nature of Alleged Violation

The GST department conducted a physical verification of transport documents and identified alleged defects in the documentation. Based on these findings, the authorities have imposed a penalty amounting to ₹5,19,840 on AkzoNobel India.

Financial Impact and Company Response

The total liability as per the notice stands at ₹5,19,840. However, the company has clarified that this is currently at the notice stage, which remains open for further submissions before the relevant authorities.

Management's Position

AkzoNobel India's management has indicated that the company is in the process of responding to the notice within the stipulated timeframe mentioned in the GST department's communication. The company views this matter as being at the notice stage, with opportunities for further submissions and clarifications before the relevant tax authorities.

The company is preparing its response to address the allegations of transport document defects within the given timeframe.