Disclosure regarding order to drop the demand of Service Tax and CENVAT.
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Awaiting price reaction for this filing.
Neptune Logitek received an order dated January 22, 2026 from the Commissioner of Central Goods & Service Tax, Kutch (Gandhidham) on a show cause notice originally issued on October 13, 2017. The original gross demand was Rs. 38.33 crore (Rs. 26.78 crore Service Tax + Rs. 11.56 crore CENVAT). The authority has dropped almost the entire demand — Rs. 26.77 crore of Service Tax and the full Rs. 11.56 crore of CENVAT. Only Rs. 63,751 of Service Tax needs to be recovered, along with a small late filing fee of Rs. 12,200. The total outgo with interest and penalty comes to just Rs. 2,41,066, which the company says is not financially significant.
This is a positive outcome for shareholders — the company has been let off on a demand of nearly Rs. 38 crore and now only needs to pay a negligible Rs. 2.41 lakh. The resolution removes a long-pending tax overhang and should be viewed favourably by the market.