Castrol India Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
CASTROLIND · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Castrol India has won a long-running tax dispute against the Maharashtra Sales Tax Department (MSTD) at the Customs Excise & Service Tax Appellate Tribunal (CESTAT). The original demand of INR 4,131 Crores related to the period 2007-08 to 2017-18, where MSTD alleged that movement of goods from Castrol's Maharashtra plants to clearing agents in other states constituted inter-state sales. After the MVAT Tribunal had earlier ruled in Castrol's favour for all 10 years, MSTD appealed to CESTAT for 9 of those years. On 11 July 2025, CESTAT rejected all of MSTD's appeals, bringing the dispute to a definitive end in Castrol's favour. The company had not made any provision in its books for this amount, viewing the risk of an economic outflow as remote.
Positive for shareholders — the company has successfully defeated a massive INR 4,131 Crore tax claim, removing a significant long-pending overhang on the stock. No financial impact on earnings as no provision was ever created, and the win eliminates any future liability risk on this matter.