Ramco Cements resolves CENVAT credit dispute, reduces contingent liability

The Ramco Cements Limited (BSE:RAMCOCEM) announced the resolution of a dispute regarding the disallowance of CENVAT (Central Value Added Tax) credit on outward freight. The company's appeal before the CESTAT (Customs, Excise and Service Tax Appellate Tribunal) was remanded to the Original Authority, which subsequently dropped further proceedings on March 31, 2025. As a result, the issue is resolved to the extent of INR16.4 million. This resolution also impacts the company's overall contingent liabilities related to similar pending disputes with other statutory authorities. The total value of such disputes, as previously disclosed on August 14, 2023, stood at INR96.4 million and has now been reduced to INR80.0 million as of April 1, 2025. Ramco Cements has informed the stock exchanges and requested that the updated information be recorded.