MRF Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
MRF · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
MRF Limited has informed the stock exchanges about the outcome of a long-running customs dispute pending before the Madras High Court. The case relates to the eligibility of Modvat credit (now GST-style input credit) claimed by MRF on imports made under the Value Based Advance License (VABAL) Scheme, involving an amount of Rs. 74.70 crores. MRF had originally challenged a 2006 CESTAT order, and the Customs Department had filed a counter-appeal. After hearings held in August–September 2024, the Madras High Court pronounced its order on 30 April 2025, allowing MRF's appeal and dismissing the Department's appeal. The detailed order was uploaded on the High Court website on 4 July 2025.
This is a positive development for MRF shareholders as the company has won a nearly two-decade-old tax dispute worth Rs. 74.70 crores. It removes a major contingent liability overhang and could result in a favourable one-time boost to earnings if the Modvat credit is now realised, though the final financial impact will depend on further steps, if any, by the Department.