CEAT Limited on Saturday said it has received a favourable order from the Commissioner of CGST & Central Excise, Mumbai Central, quashing proceedings that had sought to raise a differential excise duty demand of ₹276.7 crore on the company.
“The matter has now been adjudicated in favor of the Company as competent authority has quashed the proceedings initiated vide these 4 SCNs without any tax demand or interest or penal consequences,” CEAT said in its exchange filing.
In a regulatory filing, CEAT said the dispute related to four show-cause-cum-demand notices issued by the Directorate General of Central Excise Intelligence (DGCEI), Mumbai, during April 2016 to May 2019.
The notices alleged that the activity of assembling tyre sets—by inserting tubes and flaps and strapping them—amounted to “manufacture” or a pre-packaged commodity under the Central Excise Act read with the Legal Metrology Act, 2009.
Based on this interpretation, authorities had demanded differential duty under Section 4A of the Central Excise Act for the period March 2011 to June 2017.
The company added that the order, received on April 24, 2026, has no impact on its financials, operations or other business activities, as the disputed amount was not recognised as a liability.
