Mutual Funds Sahi Hai!
To avail the service, you will be redirected to loans.geojitcredits.com
The dispute centered around the taxability of goods transferred by Castrol from its Maharashtra-based plants and warehouses to clearing and forwarding agents (CFAs) in other states. The MSTD had claimed these movements amounted to inter-state sales made against pre-existing customer orders, liable for MVAT. Castrol India had contested the claim, asserting that the dispatches were not based on prior customer orders and adhered to a legally sound tax methodology.
The company had already received favorable orders from the MVAT Tribunal for all 10 financial years under dispute. The CESTAT decision brings closure to the appeals made by MSTD for 9 out of those 10 years. For the year 2016-17, MSTD did not contest the order of MVAT Tribunal.
Castrol clarified that it had not made any financial provision for the Rs 4,131 crore in dispute, given the remote likelihood of an economic outflow and the presence of supporting industry precedents. Hence, the final ruling is not expected to have any financial implications.
Castrol India makes automotive and industrial lubricants. It serves various sectors including automotive, mining, machinery, and wind energy.
The company reported consolidated net profit rose 7.96% to Rs 233.46 crore on a 7.3% jump in revenue from operations to Rs 1,422 crore in Q1 CY25 over Q1 CY24.