Travel Food Services faces ₹40.20 cr tax demand and penalty from CGST authorities

Travel Food Services Limited has disclosed receiving a significant tax demand order from the Office of the Commissioner of CGST and Central Excise, Mumbai Central, Mumbai. The regulatory filing under SEBI Listing Regulations reveals substantial financial implications for the quick service restaurant company.

Tax Demand Details

The company received an order which includes multiple financial components:

Component	Amount
Tax Demand	₹13.40 crores
Penalty	₹26.80 crores
Interest	Not quantified (to be paid as prescribed)
Total Quantified Demand	₹40.20 crores

Nature of Allegations

The tax demand stems from alleged discrepancies in the company's tax compliance. The authorities have cited variance in tax liability due to:

Mismatched Input Tax Credit (ITC) between returns versus GST portal/GSTR-9
Alleged excess ITC availment
Other related compliance issues

These allegations form the basis of the substantial financial demand imposed by the CGST authorities.

Company's Response and Position

Travel Food Services has maintained a firm stance regarding the tax order. The company's management believes the order was passed without taking into consideration the complete facts of the matter as submitted by them. Key aspects of the company's position include:

Strong belief in the merits of their case
Assessment that the demand has no material impact on financial operations
Confidence that operational activities remain unaffected
Commitment to taking appropriate legal action

Planned Course of Action

The company has outlined its strategic response to address the tax demand:

Comprehensive evaluation of the order is currently underway
Filing an appeal against the order with relevant authorities
Pursuing all available legal remedies under applicable laws
Ensuring compliance with regulatory disclosure requirements

Travel Food Services plans to file an appeal, citing strong case merits.

Regulatory Compliance

The disclosure has been made pursuant to Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information has also been uploaded on the company's website at www.travelfoodservices.com , ensuring transparency with stakeholders.

The company's proactive approach to regulatory compliance demonstrates its commitment to maintaining transparency while addressing the tax authorities' demands through appropriate legal channels.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.85%	-3.80%	-10.72%	+12.56%	+12.56%	+12.56%

Travel Food Services Limited (TFSL) finds itself in the spotlight as the Central Bureau of Investigation (CBI) launches a probe into alleged irregularities in airport food and beverage contracts. The investigation, which dates back to tender processes from 2012-2013, involves two of TFSL's former subsidiaries that have since merged with the parent company.

Investigation Details

The CBI has filed a First Information Report (FIR) alleging irregularities in the master concessionaire contracts for food and beverages at Chennai and Kolkata airports. The FIR, numbered RC2162025A0015 and dated December 02, 2025, names several entities and individuals, including:

Travel Food Services Chennai Pvt. Ltd.
Travel Food Services Kolkata Pvt. Ltd.
Other entities and government officials (not specifically named in the disclosure)

It's important to note that both named subsidiaries merged with Travel Food Services Limited on September 13, 2024, over a year before the FIR was filed.

Company's Response

In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Travel Food Services Limited has made a formal disclosure to the stock exchanges. The company acknowledged the ongoing investigation and provided details about the FIR in its statement.

Financial Context

While the investigation is not directly related to the company's current financial performance, it's worth noting some key financial metrics for context:

Financial Metric	FY 2025 (in ₹ crore)	YoY Change
Total Assets	1,902.70	+12.16%
Current Assets	948.60	+27.28%
Total Equity	1,070.20	+20.53%
Current Liabilities	601.90	+29.00%

These figures suggest that despite the ongoing investigation, the company has shown growth in its asset base and equity over the past year.

Implications and Next Steps

The CBI investigation into past tender processes could have potential implications for Travel Food Services Limited, even though the alleged irregularities occurred before the merger of the subsidiaries. As the investigation unfolds, investors and stakeholders will likely be watching closely for any developments that could impact the company's operations or reputation in the airport food and beverage sector.

Travel Food Services Limited has stated that it will continue to provide updates on this matter as required by regulatory obligations. The company's transparency in disclosing this information aligns with its responsibilities as a listed entity.

As the situation develops, it will be crucial to monitor any further statements from the company or findings from the CBI investigation that could affect Travel Food Services Limited's business operations or market position in the airport hospitality sector.