Shipping Corporation Of India Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
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Shipping Corporation of India (SCI) has updated the stock exchanges about a long-pending service tax dispute worth ₹383.94 crore (including penalty) plus interest, originally arising from a 2016 order for the period October 2009 to September 2014. The dispute relates to alleged non-payment of service tax on foreign services received and foreign currency expenditure under Reverse Charge Mechanism. In a favorable development, the CESTAT (Customs, Excise and Service Tax Appellate Tribunal) in Mumbai has set aside the original order against SCI and remanded (sent back) the matter to the original authority for a fresh de novo (new) hearing. The amount was already shown as a Contingent Liability in SCI's financial statements.
This is a positive development for SCI shareholders as the adverse ₹383.94 crore tax demand has been effectively put on hold. With the matter sent back for fresh hearing, the immediate financial pressure is relieved, though the final outcome remains uncertain until the de novo adjudication is completed.