Dalmia Cement (Bharat) Ltd, a subsidiary of Dalmia Bharat, has received a major relief after the Tamil Nadu tax authorities revoked tax and penalty demands amounting to ₹266.3 crore.
The company confirmed the development through a regulatory disclosure, stating that the earlier notices were issued under Section 74 of the Central Goods and Services Tax Act, 2017 and the Tamil Nadu Goods and Services Tax Act, 2017 by the Sales Tax Officer at Lalgudi in Tiruchirapalli.
The notices related to discrepancies identified in taxable turnover and input tax credit (ITC) for assessment years 2019–20 and 2022–23. After reviewing the matter, authorities have now concluded the adjudication process and withdrawn the proposed liabilities.
The original demand included:
| Assessment Year | Tax Amount | Penalty | Total |
| 2019–20 | ₹128.39 crore | ₹19.25 crore | ₹147.64 crore |
| 2022–23 | ₹59.32 crore | ₹59.32 crore | ₹118.64 crore |
| Total | ₹187.71 crore | ₹78.57 crore | ₹266.28 crore |
With the demand now officially dropped, the company stated that the decision will have no financial impact on its operations.
Dalmia Bharat, established in 1939, is currently the fourth-largest cement manufacturer in India, with an installed capacity of 49.5 MTPA.
Summary
The Tamil Nadu tax authorities have withdrawn tax and penalty demands totaling ₹266.3 crore issued to Dalmia Cement (Bharat) Ltd for AY 2019–20 and AY 2022–23. The matter has been closed without any financial implication for the company.
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