Saurashtra Cement Limited , a prominent player in the Indian cement industry, has received a significant tax demand order from the Office of the Commissioner of Central Excise & CGST, Bhavnagar. The order, totaling Rs 16.56 crores, relates to alleged ineligible availment and utilization of Input Tax Credit (ITC) under GST provisions for the financial years 2018-19 to 2023-24.

Breakdown of the Demand Order

The demand order also includes applicable interest, which is not specified in the available information.

Company's Response

Saurashtra Cement has stated that it considers the demand as not maintainable. The company is currently evaluating its options, which include filing an appeal against the order. Despite the substantial amount involved, Saurashtra Cement does not anticipate any material impact on its financials, operations, or other activities.

Legal Basis of the Demand

The tax authorities have invoked Sections 74(1) and 122(2)(b) of the Central Goods and Services Tax (CGST) Act, 2017, along with corresponding provisions of the Gujarat Goods and Services Tax (GGST) Act, 2017, and the Integrated Goods and Services Tax (IGST) Act, 2017.

Implications and Next Steps

While the company maintains its stance on the invalidity of the demand, the situation underscores the complex regulatory environment in which Indian businesses operate, particularly concerning tax matters. The outcome of this case may have implications for other companies in the cement sector and beyond, especially regarding the interpretation and application of Input Tax Credit rules under the GST regime.

Investors and stakeholders of Saurashtra Cement will likely be watching closely as the company navigates this challenge. The company's decision to explore legal options suggests a confident stance in its tax compliance practices.

As the situation develops, it will be crucial to monitor any updates from Saurashtra Cement regarding its appeal process and any potential impact on its financial statements in the coming quarters.

Saurashtra Cement Limited has announced a significant change in its leadership structure. The company's Board of Directors has approved the transition of Jay Mahendra Mehta from his current role as Executive Chairman to Non-Executive Chairman, effective September 26, 2025.

Leadership Transition

Jay Mahendra Mehta, a long-standing figure in Saurashtra Cement's leadership, requested this change to focus on personal and professional commitments outside India. While stepping back from his executive responsibilities, Mehta will continue to serve as the Chairman of the Board in a non-executive capacity.

Compensation Change

As part of this transition, Mehta will cease to draw a fixed salary from his position. This move aligns with his shift to a non-executive role, reflecting a change in his day-to-day involvement with the company's operations.

Mehta's Background and Tenure

Jay Mahendra Mehta brings a wealth of experience and education to his role. He holds degrees from prestigious institutions including Columbia University and IMD Lausanne. Mehta's association with Saurashtra Cement's Board dates back to 1987, marking over three decades of involvement with the company. His most recent appointment as Executive Chairman occurred in August 2024.

Board's Acknowledgment

The Board of Directors expressed their appreciation for Mehta's valuable guidance and leadership during his tenure as Executive Chairman. They look forward to his continued strategic support in his new non-executive capacity, recognizing the importance of his experience and insights for the company's future direction.

Looking Ahead

This transition in leadership structure comes at a time when Saurashtra Cement Limited is navigating the evolving cement industry landscape. Mehta's continued presence on the Board, albeit in a non-executive role, is expected to provide stability and strategic continuity for the company.

The change in Mehta's role represents a significant shift in Saurashtra Cement's top management and governance structure. As the company moves forward, stakeholders will be keen to observe how this transition impacts the company's strategic decisions and overall performance in the competitive cement sector.