Dabur India Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
DABUR · price
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Dabur India has received a show cause notice from the Additional Director of DGGI, Coimbatore, covering a six-year period from FY 2018-19 to FY 2023-24. The notice proposes a GST demand of approximately Rs. 110.39 crore under Section 74 of the CGST Act, 2017, along with applicable interest and penalties, questioning the classification of one of its products. The company argues the classification has already been settled in its favour by the Supreme Court under the previous tax regime for the same product. Dabur plans to contest the notice through legal remedies. It also noted that in a similar, separate product classification dispute, the High Court had previously granted it a stay. The company has clarified there is no immediate impact on its financials, operations, or other activities from this notice.
While the proposed demand of Rs. 110.39 crore plus interest and penalty is sizeable, it is only a show cause notice at this stage and not a confirmed liability. The company's strong legal standing, backed by a prior Supreme Court ruling on the same classification issue, suggests a favourable outcome is plausible, but investors should monitor the case as any adverse ruling could meaningfully affect earnings.