Akzo Nobel India faces revised service tax demand

Akzo Nobel India Limited announced today that it has received a demand order on August 29, 2025, from the Joint Commissioner of CGST and CEX in Belapur, Navi Mumbai. This order follows show cause cum demand notices issued in January and August 2014 by the Service Tax Department in Mumbai. The original notices covered the period from December 2008 to June 2014, disallowing Cenvat credit on Goods Transport Agency (GTA) services on Input Service Distributor (ISD) invoices, totaling a demand of INR 60,05,712.

The latest demand order, issued as a de-novo adjudication and received by the company on August 29, 2025, sets the revised demand amount at INR 48,56,366. This figure comprises a tax amount of INR 24,28,183, applicable interest, and a penalty of INR 24,28,183. The company is currently reviewing the order and preparing its response within the stipulated timeframe. This update is provided in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.