Deepak Nitrite Limited has achieved partial relief in its ongoing stamp duty dispute, with the Chief Controlling Revenue Authority (CCRA) delivering a favorable ruling on one of two contested orders. The company received the CCRA's decision on January 7, 2026, marking a significant development in a case that has been ongoing since 2017.

CCRA Decision Details

The CCRA passed two orders dated December 31, 2025, addressing the company's appeals against the Deputy Collector's September 2024 rulings. The authority's decision provided mixed results for Deepak Nitrite:

Background of the Dispute

The stamp duty controversy traces back to July 25, 2017, when Deepak Nitrite received a show cause notice for alleged deficiency in stamp duty payment. The dispute centered on Memorandum of entries executed by the company on May 27, 2014, and October 16, 2014, for securing term loan and working capital facilities from lenders.

Despite the company's written and oral representations contesting the demand, the Deputy Collector of the Stamp Duty Valuation Department, Vadodara, disregarded Deepak Nitrite's contentions and passed two adverse orders on September 9, 2024.

Appeal Process and Outcome

Following the Deputy Collector's orders, Deepak Nitrite filed appeals before the CCRA in Gandhinagar. The appellate authority's review resulted in:

• Complete relief in the first case, with the ₹21.00 lakh stamp duty demand and ₹50,000 penalty being entirely set aside
• Partial relief in the second case, where the matter has been remanded back to the Deputy Collector for reassessment of documentary evidence

Regulatory Compliance

The company disclosed this development under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. This follows the company's earlier disclosure dated September 21, 2024, when the original Deputy Collector orders were announced.

Current Status

With one order completely overturned and the other sent back for fresh assessment, Deepak Nitrite has secured meaningful relief in this stamp duty matter. The remanded case will require the Deputy Collector to conduct a reassessment of the documentary evidence, potentially leading to a more favorable outcome for the company in the remaining dispute involving ₹86.10 lakh in stamp duty demands.

Deepak Nitrite Limited (DNL) has announced that its wholly-owned subsidiary, Deepak Chem Tech Limited, has commenced operations at its new Nitric Acid Plant in Nandesari, Gujarat. This strategic move, involving a capital expenditure of approximately ₹515 crores, marks a significant step in the Deepak Group's vertical integration strategy.

Key Highlights

• Investment: ₹515 crores capital expenditure
• Location: Nandesari, Gujarat
• Strategic Importance: Enhances backward and forward integration
• Product Focus: Nitric Acid production

Strategic Implications

The new plant is expected to strengthen the group's supply chain security for key intermediates and enable deeper penetration into high-value applications. This development is part of Deepak Nitrite's broader strategy to evolve into a more integrated chemical platform, spanning from Ammonia to Amines.

Financial Context

To put this investment into perspective, let's look at some key financial metrics for Deepak Nitrite Limited:

The ₹515 crore investment in the Nitric Acid Plant represents a significant allocation of capital, especially when compared to the company's current fixed assets of ₹898.00 crores. This substantial investment underscores the strategic importance of the new plant to Deepak Nitrite's long-term growth plans.

Industry Positioning

With this new facility, Deepak Nitrite joins a select group of global players with integrated capabilities from Ammonia to Amines. This positions the company to potentially capture more value across the chemical manufacturing value chain and may enhance its competitiveness in both domestic and international markets.

Conclusion

The commencement of operations at the Nitric Acid Plant represents a pivotal moment for Deepak Nitrite Limited. By strengthening its vertical integration, the company aims to secure its supply chain, expand its product portfolio, and potentially improve its market position in the specialty chemicals sector. Investors and industry observers will likely be watching closely to see how this strategic investment translates into financial performance in the coming quarters.