Paradeep Phosphates Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
PARADEEP · price
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NCLAT has dismissed Paradeep Phosphates' appeal seeking Entry Tax exemption under a BIFR-sanctioned rehabilitation scheme from 2007-2014. The dispute involves a total tax liability of ₹76 crore, of which the company has already deposited ₹26 crore under protest. The company had claimed remission from Entry Tax during the period when it was classified as a sick industrial company under SICA. The NCLAT upheld the earlier NCLT order rejecting the company's plea. The company states no material financial impact is expected and plans to file a further appeal in the Supreme Court.
The litigation loss at NCLAT level adds uncertainty but the company has already provisioned for the liability, minimising near-term stock price impact. The planned Supreme Court appeal keeps the matter alive.