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ACC Ltd has received a tax demand order of ₹59.81 crore, inclusive of interest and penalty, from tax authorities. The company plans to appeal the order, citing alleged excess Input Tax Credit (ITC) availment and other compliance concerns.
ACC Limited announced on April 10, 2026, that it received a tax demand order totaling ₹59.81 crore. This amount includes principal tax, interest, and penalties. Tax authorities issued the demand over allegations of excess Input Tax Credit (ITC) claims and other tax compliance matters. ACC Limited intends to appeal the decision through legal channels and stated that it does not expect the demand to materially affect its financial or operational performance.
The tax demand represents a potential financial liability for investors, though ACC's planned appeal and assurance of no material impact aim to ease immediate concerns. The appeal's outcome will be key in defining the final financial consequence and might influence future cases of similar compliance issues.
ACC Limited, a major cement and ready-mix concrete producer and part of the Adani Group, has a history of tax scrutiny. In October 2025, the Income Tax Department fined ACC ₹23.07 crore for the Assessment Years 2015-16 and 2018-19, citing inaccurate income details and under-reporting. Earlier, in November 2024, ACC contested a GST demand of over ₹15 crore from Ranchi authorities related to rejected input tax credit claims. These past issues suggest a pattern of tax compliance challenges, though ACC has maintained they have not significantly impacted its operations.
Following the order, ACC Limited will begin a formal appeal process. Shareholders will be watching the appeal's progress and outcome. The company expects its operations to continue without immediate disruption.
The main risk is the potential financial burden should the appeal against the ₹59.81 crore tax demand fail. The appeal process itself will also involve legal costs and administrative work. A negative ruling might indicate wider tax compliance issues for the company.
Tax compliance and disputes are not unique to ACC, as other major Indian cement companies have faced similar issues. UltraTech Cement, for instance, dealt with a ₹7.82 billion GST demand for alleged short payment and ITC issues, alongside another ₹53.81 crore demand. Shree Cement is contesting a draft tax demand of about ₹149 crore and has previously faced tax evasion allegations. Ambuja Cements, also an Adani Group company, received a ₹1.34 crore tax demand. These cases highlight that tax compliance challenges are common across the cement sector.
Investors will be looking for the filing date and specific grounds for ACC Limited's appeal. Updates on the legal challenge's progress and its eventual outcome, including any revised financial implications, will be closely monitored. Further details on the specific ITC issues cited by authorities might also be revealed.