Intellect Design Arena wins significant service tax relief

Intellect Design Arena Limited announced on December 16, 2025, that it secured a favorable Final Order from the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, dated December 15, 2025. The Tribunal set aside a Service Tax demand of ₹36,77,40,000, along with associated interest and penalties. This demand was previously confirmed by the principal commissioner of CGST and Central Excise, Chennai North. This outcome significantly reduces the company's contingent liabilities and validates its tax positions regarding overseas transactions.

Additionally, the CESTAT remanded a separate demand of ₹1,16,11,766 arising from a clerical error for verification of payment proof. The Tribunal noted that if the payment is verified, this demand will not survive. The company expects no further financial outflow on this account as it has already discharged this liability.

The ruling, specifically Final Order No. 41468 / 2025, sets aside Order-in-Original No. 48/2022, confirming the non-applicability of Service Tax for certain overseas transactions. This decision removes a significant contingent liability from the company's books.