Akzo Nobel India Limited (BSE: 500710, NSE: AKZOINDIA) has disclosed a pending sales tax-related litigation under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, as per its latest filing with stock exchanges.
Key Litigation Details
Opposing Party: Chandigarh Commercial Tax Department
Court/Tribunal: Excise and Taxation Officer, Chandigarh Commercial Tax Department
Nature of Dispute:
The dispute stems from Sales Tax Appeal proceedings.
The company received an Order under Section 48 of the Punjab Value Added Tax (PVAT) Act on December 31, 2025, at 12:30 PM.
The order cites a short payment of ₹1,10,033, including:
Tax: ₹34,437
Interest: ₹14,119
Penalty: ₹61,477.
Financial Implications
The total quantum of claims is ₹1,10,033, as per the order.
Impact Assessment: The financial liability is relatively small in comparison to Akzo Nobel India’s overall financials but remains subject to further legal proceedings.
Company’s Response
Akzo Nobel India has the option to submit further responses before the relevant authorities.
The company has confirmed it is reviewing the order and will respond within the stipulated timeframe.
Conclusion
While the financial impact of this tax dispute is limited, the case highlights regulatory scrutiny in tax compliance. Investors will closely watch for updates on how the company navigates the legal process.