Shree Cement Limited has received a significant GST demand order from tax authorities in Karnataka, marking a regulatory development that the company has disclosed to stock exchanges.

GST Demand Order Details

The Joint Commissioner, Central Tax Central Excise, Belagavi, Karnataka, has issued a demand order against Shree Cement Limited with substantial financial implications:

Nature of Alleged Violation

The demand order pertains to the alleged availment of ineligible input tax credit by the company. Input tax credit allows businesses to reduce their tax liability by claiming credit for taxes paid on inputs, but the authorities have contested the eligibility of certain credits claimed by Shree Cement.

Company's Response and Financial Impact

Shree Cement has indicated that the order will have no major financial impact on the company's operations. The management has stated that they do not agree with the contentions raised in the demand order, suggesting they will contest the allegations.

Legal Recourse

The company plans to appeal against the demand order. They intend to challenge the order through the appropriate legal channels under Section 107 of the Karnataka GST Act.

Regulatory Compliance

The disclosure has been made pursuant to Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulatory framework requires listed companies to promptly inform stock exchanges about material developments that could impact their operations or financial position.

Shree Cement has formally communicated this development to both the National Stock Exchange of India Limited and BSE Limited, ensuring compliance with listing obligations and maintaining transparency with stakeholders.

Shree Cement Limited has withdrawn the lockout at its cement manufacturing facility in Baloda Bazar, Raipur, Chhattisgarh, effective December 22, 2025, at 11:00 PM. The company informed stock exchanges on December 23, 2025, about the resolution following an amicable settlement between management and workmen.

Lockout Resolution and Timeline

The lockout, which was initially declared on December 18, 2025, due to non-cooperation of workmen, lasted for four days before being resolved. Management and workmen successfully arrived at an amicable settlement to resolve the standoff, leading to the withdrawal of the lockout.

Production Impact and Recovery

During the lockout period, the company experienced a daily cement production loss of approximately 10,000 tons. The total production loss over the four-day period amounted to around 40,000 tons of cement. Importantly, the company reported no loss or damage to company property during the lockout period from December 18 to December 22, 2025.

Operational Status

With the withdrawal of the lockout, normal operations are expected to resume at the Baloda Bazar cement plant. The successful resolution demonstrates the company's ability to address operational challenges through dialogue and negotiation with its workforce. The facility can now return to its regular production capacity, helping to minimize the overall impact on the company's quarterly output.

The disclosure was made in compliance with Regulation 30 of the SEBI Listing Regulations, keeping stakeholders informed about the material developments affecting the company's operations.