Bata India Limited has received a GST demand order from the Commercial Tax Officer, Chandigarh, imposing a penalty of ₹23.95 lakh for alleged violations during Financial Year 2021-22. The company disclosed this development to stock exchanges on December 30, 2025, in compliance with SEBI listing regulations.

GST Demand Order Details

The Commercial Tax Officer, Chandigarh, issued the demand order in FORM GST DRC-07 under the CGST Act, 2017, along with an assessment order. The order was passed on December 30, 2025, addressing alleged contraventions related to the company's tax compliance.

Nature of Alleged Violations

The tax authority has alleged that Bata India's Input Tax Credit (ITC) claims were not in accordance with applicable laws and lacked supporting documentary evidence. These allegations form the basis for the penalty imposition in addition to the tax demand and interest components.

Company's Response and Financial Impact

Bata India has expressed confidence in its position regarding the GST matter. The company stated that it believes it has a good case to defend the matters before the appropriate authorities without any material financial impact. This suggests the company intends to challenge the order through available legal remedies.

Regulatory Compliance

The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and communicated to BSE Limited, National Stock Exchange of India Limited, and The Calcutta Stock Exchange Limited. The information has also been uploaded on the company's website at www.bata.in for stakeholder access.

The Supreme Court has delivered a significant ruling in a high-profile design infringement case, rejecting appeals from several Indian footwear manufacturers, including Bata India and Liberty Shoes. This decision upholds the Delhi High Court's July 2025 judgment, allowing Crocs Inc. USA to proceed with its passing off suits against these companies.

Case Background

The case centers around allegations that Indian footwear companies have copied Crocs' distinctive foam clog designs. Crocs Inc. USA, known for its iconic foam clogs, had filed passing off suits against several Indian manufacturers, claiming that their products infringed on Crocs' unique design.

Key Points of the Ruling

Appeal Rejection

The Supreme Court dismissed petitions from Bata India, Liberty Shoes, and other footwear manufacturers challenging the Delhi High Court's decision.

Passing Off Suits

The ruling allows Crocs Inc. USA to continue with its passing off suits against the Indian companies.

Design vs. Trademark

The defendants argued that allowing the suits would create a dual monopoly over features protected under both design and trademark laws.

Implications for the Indian Footwear Industry

This ruling has significant implications for the Indian footwear industry, particularly for manufacturers producing foam clog-style footwear. The decision underscores the importance of intellectual property rights in the fashion and footwear sectors, potentially setting a precedent for future design infringement cases in India.

What's Next

With the Supreme Court's decision, the case will likely return to the lower courts for further proceedings on Crocs' passing off suits. This development may prompt Indian footwear manufacturers to reassess their product designs and intellectual property strategies to avoid potential legal challenges in the future.

The case highlights the ongoing tension between global brands protecting their designs and local manufacturers in emerging markets. It also emphasizes the need for clearer guidelines on the intersection of design and trademark laws in India's rapidly evolving retail landscape.