Tata Steel Wins Supreme Court Case on ITC Demand of ₹1781 Crore
Tata Steel has won a Supreme Court case regarding a ₹890.52 crore Input Tax Credit (ITC) demand. The Supreme Court set aside the demand, penalty, and interest, totaling ₹1781.04 crore. The tax department may initiate fresh proceedings by February 28, 2027. This is a significant legal victory for the company.
The resolution of this litigation, which involved a demand of ₹890.52 crore plus penalty and interest (totaling ₹1781.04 crore), has a substantial positive financial and operational impact on the company.
The company has won a major legal battle in the Supreme Court, resulting in the quashing of a significant tax demand, penalty, and interest. This is a highly favorable outcome for Tata Steel.
Tata Steel Limited has announced a significant legal victory in a Goods and Services Tax (GST) case. The company received a Demand cum Show Cause Notice on June 24, 2025, from the Office of the Commissioner of CGST and Central Excise, Jamshedpur, concerning the irregular availing of Input Tax Credit (ITC) amounting to ₹890.52 crore for the period FY2018-19 through FY2020-21.
The Adjudicating Authority confirmed the demand of ₹890.52 crore, along with a penalty of ₹890.52 crore and applicable interest, by an order dated December 26, 2025. The company contested this, arguing that the ITC claimed was permissible and that the notice was issued without jurisdiction and was time-barred.
Following the dismissal of their initial Writ Petition by the Hon’ble High Court of Jharkhand on April 23, 2026, Tata Steel filed a Special Leave Petition (SLP) with the Hon’ble Supreme Court of India. The Supreme Court heard the matter on August 19, 2026, and on August 25, 2026, pronounced its final judgment. The court allowed the company's appeal, setting aside the Show Cause Notice and the Order-in-Original. The tax demand, penalty, and interest totaling ₹1781.04 crore (₹890.52 crore + ₹890.52 crore) now stand quashed. The Supreme Court granted the Tax Department liberty to initiate proceedings under Section 74 of the CGST Act, provided foundational facts were established and proceedings were initiated before February 28, 2027.
A plain-language summary of a public exchange filing by Tata Steel Limited. Read the original for the full detail.