Suzlon Energy wins tax appeal, penalty reduced to nil

Suzlon Energy announced on December 11, 2025, a favorable ruling from the CESTAT, Mumbai, regarding a tax dispute related to the classification of imported designs and drawings. The Commissioner of Central Excise and Service Tax, Pune-III, had initially imposed a service tax and a penalty of Rs.21,92,23,767/- on transactions conducted between 2007 and 2011.

The CESTAT Mumbai, following a referral back from the Supreme Court, allowed Suzlon's appeals on both the grounds of merits and time limitation. Consequently, the penalty was reduced from Rs.21,92,23,767/- to Nil, effectively resolving the demand for tax, penalty, and interest totalling Rs.101.92 Crores.

This ruling significantly reduces the company's contingent liability by Rs.101.92 Crores, addressing a matter previously reported in the Integrated Report for the quarter ended September 30, 2025. The decision is expected to have a positive impact on Suzlon's financial position.