Novartis India to appeal service tax demand and penalty

Novartis India Limited has announced its intention to appeal an order from the Commissioner (Appeals-II), CGST & Central Excise, Mumbai, confirming a CENVAT Credit demand of INR 15,01,762 for the financial year 2014-15. This demand is accompanied by interest and penalties, bringing the total financial impact to INR 30,05,524.

The order, received on February 18, 2025, relates to service tax demand and penalty for the period spanning October 1, 2014, to June 30, 2017. The penalties include INR 15,03,762 for non-reversal of common input tax credit on the sale of business on a going concern basis.

Novartis India is currently evaluating its options and plans to file an appeal with the appropriate appellate authority, promising to keep the stock exchanges informed of future developments. The company’s whole-time director and chief financial officer, Shilpa Joshi, issued the disclosure on November 24, 2025.