Dalmia Cement (Bharat) Wins Tax Relief as Tamil Nadu Authority Drops ₹266.3 Crore Demand

In a significant relief, Dalmia Cement (Bharat) Ltd, a subsidiary of Dalmia Bharat, has had tax and penalty demands totaling ₹266.3 crore dropped by the Tamil Nadu tax department. The demand pertained to discrepancies in taxable turnover and input tax credit (ITC) for Assessment Years 2019–20 and 2022–23. The Sales Tax Officer in Lalgudi, Tiruchirapalli, had issued show cause notices under GST laws, proposing: ₹128.39 crore tax + ₹19.25 crore penalty for AY 2019–20 ₹59.32 crore tax + ₹59.32 crore penalty for AY 2022–23 However, during adjudication, the department withdrew the entire demand, citing resolution of the issues raised. Dalmia Bharat confirmed in a regulatory filing that there is no financial impact on the company. This favorable outcome strengthens its compliance standing and eases potential cash flow concerns. As one of India’s top cement producers with 49.5 MTPA capacity, Dalmia Bharat continues to navigate regulatory challenges while maintaining operational and financial stability.