The Ramco Cements Limited, a leading player in India’s cement industry, has successfully resolved a long-standing litigation concerning CENVAT credit on outward freight. The company, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, disclosed that the dispute has been settled in its favour, saving ₹0.94 crore.

The case, which pertained to disallowance of CENVAT credit on outward freight, had been under litigation before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). In its earlier proceedings, CESTAT remanded the case back to the Original Authority, directing a fresh review of the matter. After subsequent hearings, the Original Authority issued its ruling on December 23, 2024, where it dropped all further proceedings and ruled in favour of Ramco Cements.

As a result, the company has been granted consequential benefits under the applicable laws, effectively putting an end to this legal dispute. The official order was received by Ramco Cements on February 14, 2025, at 4 PM, after which the company promptly made a formal disclosure to the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on February 15, 2025.

The dispute over CENVAT credit arose due to interpretational differences in tax applicability on outward freight expenses, a subject that has been a matter of contention for several businesses. The ruling in favour of Ramco Cements sets a positive precedent for similar cases in the industry.

With this favourable outcome, Ramco Cements gains financial relief of ₹0.94 crore, further strengthening its balance sheet. The company has reiterated its commitment to strict regulatory compliance and effective legal management. Investors and stakeholders can view this as a positive development, reinforcing confidence in Ramco Cements’ financial prudence and operational efficiency.

As Ramco Cements continues its expansion and operational growth, this resolution ensures that no additional tax liability will burden the company regarding CENVAT credit on outward freight. The company remains focused on driving sustainable business growth, optimising its cost structure, and navigating regulatory frameworks effectively.

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