Aarti Industries hit with INR 2.35 crore central excise duty demand

Aarti Industries Limited has received an Order-in-Original from the Additional Commissioner of Central GST & Central Excise, Surat, demanding Central Excise duty of INR 1.97 crores, along with applicable interest, under Section 11A(1) of the Central Excise Act, 1944. The order, dated November 28, 2025, also imposes a penalty of INR 0.38 crores under Rule 25 of the Central Excise Act, 1944, read with Section 11AC(1)(a).

The demand relates to the company's supply of Di-Calcium Phosphate, stemming from Show Cause Notices issued in February 2016 and January 2018. The company clarified that the demand, including interest and penalty, will have no material impact on its financials or operations. Aarti Industries asserts that its claims are supported by legal justification and plans to file an appeal against the order as per the Central Excise Act, 1944.

The company acknowledged that the disclosure of the order was delayed unintentionally but was reported swiftly once brought to attention. The order was received on December 1, 2025.