Tata Steel has received extended interim protection from the Orissa High Court at Cuttack until January 8, 2026, in two material litigation cases involving substantial financial demands from mining authorities. The company disclosed this development through a regulatory filing dated December 23, 2025, following the court's order dated December 19, 2025.

Dual Legal Challenges Over Mining Compliance

The steel major is contesting two separate demand letters from the Office of Deputy Director of Mines, Jajpur, related to its Sukinda Chromite Block operations. These demands stem from alleged violations of Rule 12-A of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 (MCR 2016).

Court Proceedings and Interim Relief

Both writ petitions seek quashing of the respective demand letters issued by mining authorities. The Orissa High Court tagged both petitions with similar cases and granted interim protection restraining authorities from taking coercive action against the company. For the first petition, the court initially granted interim protection on August 14, 2025, which was subsequently extended through multiple hearings until December 19, 2025. The second petition received similar protection starting November 21, 2025, also extended until the same date.

Financial Implications and Regulatory Context

The combined demand of ₹4,313.62 crores represents significant financial exposure for Tata Steel. The mining authorities' demands are connected to revised assessment of shortfall in mineral dispatch from Sukinda Chromite Block and alleged violations under Mine Development and Production Agreement terms, leading to consequent appropriation of performance security.

Current Status and Regulatory Compliance

Following the December 19, 2025 hearing, the Orissa High Court has extended interim protection for both matters until January 8, 2026. This protection prevents mining authorities from taking any coercive measures against Tata Steel while the legal proceedings continue. The company has made this disclosure in compliance with Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency regarding material litigation that could impact its operations and financial position.

Tata Steel has secured a significant victory in a GST compensation cess dispute, with authorities setting aside the entire tax demand of ₹161.52 crores and imposing no penalty on the company.

Favourable GST Order Details

Tata Steel received a favourable order from the Joint Commissioner of CGST Central Excise, Jamshedpur, Jharkhand. The order provides complete relief to the company in a compensation cess matter that had been under adjudication.

Background of the Case

The dispute originated from a show cause notice issued by the Directorate General of GST Intelligence, Regional Unit, Jamshedpur. The notice was issued against erstwhile Tata Steel Long Products Limited (TSLP), which amalgamated with Tata Steel effective November 15, 2023, through a scheme of amalgamation.

The GST authorities had raised concerns about input tax credit compensation cess amounting to ₹161.52 crores allegedly irregularly availed by TSLP during April 2019 through February 2024. The show cause notice also questioned:

• Input tax credit of compensation cess amounting to ₹160.28 crores claimed to be already reversed/deposited via GSTR-3B returns of December 2022 and August 2023
• Potential penalty of ₹161.52 crores on the company

Authority's Decision

The Joint Commissioner took cognizance of the fact that Tata Steel had already paid the necessary GST amount of ₹160.28 crores while filing its GST returns. This amount was appropriated to the government exchequer. Additionally, the balance tax demand of ₹1.23 crores was dropped by the authority.

Regulatory Compliance

Tata Steel made this disclosure in compliance with Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company had previously disclosed the receipt of the show cause notice and has now updated stakeholders following the management's evaluation of the favourable order.

This resolution eliminates a significant contingent liability for Tata Steel and provides clarity on the GST compensation cess matter related to its amalgamated entity.