Updater Services has disclosed that its subsidiary, Fusion Foods and Catering Private Limited, has received a tax order worth ₹1.01 crore from the Office of the Assistant Commissioner, Chennai, Tamil Nadu. The order, dated December 29, 2025, has been issued under Section 73 of the CGST Act regarding supplies to Special Economic Zones (SEZs) without payment of tax.

Order Details and Regulatory Action

The tax authority has passed the order under Section 73, citing "Supply to SEZs without payment of tax" as the basis for the action. The company received the order on December 29, 2025, and has provided detailed disclosure under Regulation 30 requirements.

Company's Assessment and Response Strategy

Updater Services has assessed that the order is "devoid of merits" and expects the financial impact to be nil. The holding company, on behalf of its subsidiary Fusion Foods and Catering Private Limited, is actively exploring all legal options including filing a writ or appeal before the appellate authority.

Expected Financial Impact

Despite the substantial monetary value involved, the company maintains that based on its assessment, the expected financial amount impact will be nil. This confidence stems from the company's belief that the order lacks merit and can be successfully challenged through appropriate legal channels.

Legal Strategy and Next Steps

The company has outlined a comprehensive legal response strategy, indicating it will pursue all available legal remedies. This includes potential filing of writs or appeals before the appropriate appellate authority to contest the tax order and protect the subsidiary's interests.

Updater Services Limited has informed stock exchanges about receiving a regulatory order from tax authorities in Maharashtra. The company disclosed this development under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Regulatory Order Details

The Chennai-based business services company received an order from the Office of the Superintendent, Pune, Maharashtra on December 23, 2025. The order pertains to tax obligations under the Goods and Services Tax framework.

Nature of Tax Dispute

The order has been issued on the basis of alleged short payment of tax on housekeeping and cleaning services falling under composite supply provisions as per Section 8 of the CGST Act, 2017. This relates to the company's business operations in providing facility management and related services.

Company's Response and Assessment

Updater Services Limited has expressed disagreement with the regulatory order. The company stated that the order was passed without considering the response they had submitted against the initial notice from the tax authorities.

Legal Strategy

The company is taking a proactive approach to address this regulatory challenge:

• Exploring all available legal options
• Considering filing a writ petition
• Evaluating appeal options before the appellate authority
• Assessing the merits of the case for potential resolution

Financial Impact Assessment

Based on the company's internal assessment, Updater Services Limited believes the order lacks merit and expects the financial impact to be negligible. The company has indicated confidence that there will be no significant financial impact on its operations once the legal process is completed.

The company has fulfilled its disclosure obligations by informing both BSE (Scrip Code: 543996) and NSE (Code: UDS) about this regulatory development as required under the listing regulations.