VST Industries Receives ₹48.42 Lakh Show Cause Notice from Central Excise Department

Hyderabad, January 28, 2025 – VST Industries Limited (NSE: VSTIND, BSE: 509966) has disclosed that it has received a Show Cause Notice (SCN) from the Central Excise Department regarding alleged irregularities in the availment of Cenvat Credit for the financial year 2023-24. The notice demands a total payment of ₹48,42,648, excluding interest and penalties.

Key Details of the Notice​

• Issuing Authority: Central Excise Department under the Central Excise Act, 1944.
• Date of Notice Receipt: January 27, 2025.
• Nature of Allegation:
  • Discrepancies in Cenvat Credit claims on duty-paid goods returned to the factory.
• Amount Demanded: ₹48.42 lakh (excluding interest and penalties).

Company’s Response & Financial Impact​

VST Industries has stated that it is evaluating its next steps, including filing a formal response to the notice. The company acknowledged that the financial impact of this demand is currently limited to the specified amount, and further legal actions will be assessed.

Investor Outlook​

While the demand is relatively small in scale, regulatory scrutiny on tax compliance could impact operational cash flows and investor sentiment. Market participants will closely watch VST Industries’ response and any potential financial provisions in the company’s upcoming earnings report.