Travel Food Services receives tax relief, demand reduced to ₹14.4 Cr from ₹40.2 Cr
Travel Food Services received a rectification order reducing its tax demand and penalty from ₹40.20 crore to ₹14.40 crore. The order, dated May 21, 2026, was received on May 27, 2026. The company is evaluating further legal remedies and believes the reduction has no material impact on its financials.
The announcement explicitly states that the reduced demand has no material impact on the company's financials, operations, or other activities.
The company received substantial relief through a significant reduction in the earlier tax demand and penalty, which is a positive development.
Travel Food Services Limited announced on May 28, 2026, that it has received a rectification order dated May 21, 2026, from the Office of the Commissioner of CGST and Central Excise, Mumbai Central. This order, received by the company on May 27, 2026, grants substantial relief by significantly reducing the earlier tax demand and penalty. The total demand has been reduced from ₹40.20 crore (40,20,34,815) to ₹14.40 crore (14,40,00,796). This includes a tax demand of ₹7.20 crore (7,20,00,398) and a penalty of ₹7.20 crore (7,20,00,398), with interest to be paid as prescribed.
The original demand, issued on December 19, 2025, was based on alleged variances in tax liability due to mismatched ITC. The company believes it has a strong case on merits and is evaluating further legal remedies, including filing an appeal against the rectification order.
The company stated that the demand made under the Rectification Order has no material impact on its financials and does not affect its operational or other activities. Travel Food Services Limited continues to believe the order was passed without considering all submitted facts and is proceeding with appropriate steps for an appeal.
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Travel Food Services Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it low impact, the band that almost never moves a portfolio on its own.
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