Ramco Cements Limited, a major player in the cement industry, has provided an update on its ongoing litigations and disputes, including a resolution regarding a CENVAT credit dispute concerning outward freight charges. The company disclosed these developments in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015, and provided details to the National Stock Exchange of India (NSE) and BSE Limited.

The company has resolved one significant issue related to the disallowance of CENVAT credit on outward freight, which had been under litigation. The appeal filed by Ramco Cements before the CESTAT (Customs, Excise, and Service Tax Appellate Tribunal) was remanded back to the Original Authority (Additional Commissioner of GST and Central Excise, Madurai) for further proceedings. The CESTAT orders, dated 10th July 2024 and 4th September 2024, led to a hearing where the Original Authority issued an order on 31st March 2025, effectively dropping the proceedings. This decision has resulted in a resolution of the dispute for an amount of ₹1.64 crores.

The company officially received the order from the Original Authority on 1st April 2025 at 6:30 PM, marking the conclusion of this legal matter. This resolution brings clarity to the company’s financial position and reduces the total pending disputes.

Ongoing Disputes and Reduced Financial Impact

Ramco Cements also provided an update on its pending legal disputes with various statutory authorities. In the earlier communication dated 14th August 2023, the company had informed the stock exchanges about ongoing disputes amounting to ₹9.64 crores. As of 1st April 2025, this amount has been reduced to ₹8.00 crores due to the resolution of the CENVAT credit dispute.

This reduction reflects positively on the company’s overall financial outlook, as it lessens the exposure to ongoing legal matters. The remaining disputes, which are of a similar nature, are still under consideration by the respective authorities, but the company remains confident in resolving these issues as well.

Compliance with SEBI Regulations

Ramco Cements has diligently complied with the regulatory requirement of timely disclosure as per SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations. The company continues to inform the stock exchanges of material litigation outcomes and ensures that all significant updates are shared in a transparent and accurate manner.

The resolution of the CENVAT credit dispute and the reduction of pending legal claims further affirm the company's commitment to maintaining sound corporate governance practices and adhering to all regulatory standards.

Conclusion

In conclusion, Ramco Cements has successfully resolved a key CENVAT credit dispute, reducing its pending liabilities by ₹1.64 crores. With ongoing efforts to address similar disputes, the company continues to prioritize legal compliance and investor transparency. The reduced financial impact of these disputes will likely benefit the company’s financial performance in the future, as it moves towards resolving the remaining claims.

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