On 30th April 2025, HP Adhesives Limited disclosed an important update regarding a final order passed by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai Regional Bench. The order pertains to the Cenvat credit disallowance and the subsequent tax liability for the financial year 2019-20. This disclosure was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Order
The order, which was issued for the FY 2019-20, involves a demand of approximately Rs. 6.60 Lakhs, which includes:

• Tax liability: Rs. 2.05 Lakhs

• Penalty: Rs. 2.05 Lakhs

• Interest payable: Rs. 2.47 Lakhs (calculated till date)

This amount was confirmed after the company’s appeal against the original order dated 11th March 2021 was rejected by the tribunal on 22nd April 2025. The company received the appeal rejection order on 29th April 2025 at 4:55 PM via post. The rejection of the appeal has resulted in the final confirmation of the liability amount, and the company is required to make the payment to the Excise authority.

Details of the Violation
The original demand arose from a Cenvat credit disallowance during the assessment proceedings. The company had previously disclosed this contingent liability of Rs. 2.05 Lakhs in its Annual Reports, and this liability has now been fully confirmed by the final order.

Impact on the Company
Despite the confirmed liability, the company has emphasized that it does not expect any significant financial impact from the order. The total amount of Rs. 6.60 Lakhs is required to be paid to the Excise authority, but HP Adhesives believes that this does not pose a major disruption to its financial operations.

HP Adhesives has made this information available for public access on its official website in the Investor Relations Section under the URL: www.hpadheisves.com.

In conclusion, the final order represents a confirmed tax liability that HP Adhesives is now obligated to settle, but the company remains confident that this will not significantly affect its financial stability or operations. The payment of the dues will be made to the appropriate Excise authority following the final order's confirmation.

For more updates and detailed information, stakeholders and investors are encouraged to check the Investor Relations section on HP Adhesives' official website.

The Upcoming IPOs in this week and coming weeks are  Wagons Learning, Srigee DLM, Manoj Jewellers.

The Current active IPO are Kenrik Industries,Arunaya Organics, Ather Energy, Iware Supplychain Services.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.