JSW Dulux has received an appeal order from the Commercial Taxes department, reducing the previously contested tax demand from Rs 118.33 crore to Rs 42.04 crore. The order concerns the disallowance of input tax credit for the 2020-2021 period, with the company currently preparing its next response to the authorities.
JSW Dulux Litigation Update: Tax Demand Lowered
Initial Demand: Rs 118.33 crore
New Order Demand: Rs 42.04 crore
Reader Takeaway: Tax authorities significantly slashed the liability; the company is now evaluating further legal responses to resolve remaining claims.
What just happened
JSW Dulux Ltd has received an appeal order from the Assistant Commissioner of Commercial Taxes in Bengaluru. This order relates to a show cause notice issued on August 5, 2026, regarding the disallowance of input tax credit for the period covering April 2020 to March 2021. The new order marks a substantial downward revision of the company's financial obligation.
Why this matters
The reduction of the demand from Rs 118.33 crore to Rs 42.04 crore provides relief to the company's balance sheet projections. The revised demand is composed of Rs 14.07 crore in taxes, Rs 13.90 crore in interest, and a penalty of Rs 14.07 crore.
What changes now
The order remains open for further submissions. JSW Dulux has confirmed it is actively working on a response to the authorities within the stipulated timeframe to contest or resolve the remaining Rs 42.04 crore liability.
What to track next
Investors should monitor future exchange disclosures from JSW Dulux regarding any further appeals, settlement proceedings, or final payments made to the commercial tax department.