Shree Digvijay Cement Company Limited (SDCCL) has successfully concluded a long-standing excise dispute after the Hon’ble Supreme Court of India passed a final order in its favour, thereby dismissing an appeal filed by the Commissioner of Central Excise and Service Tax. The dispute pertained to a demand raised by the excise department amounting to ₹22,79,81,772 (Rupees Twenty-Two Crores Seventy-nine Lacs Eighty-one Thousand Seven Hundred Seventy-two).

Background of the Case

The issue stemmed from a 2011 excise demand raised by the Excise and Service Tax Department. According to the department, Shree Digvijay Cement had supplied cement in packaged form to a specific class of buyers—institutional or industrial consumers—without printing the Maximum Retail Price (MRP) or Retail Sale Price (RSP). These supplies occurred during the period between December 2008 and June 2010.

The department contended that this act was a contravention of excise regulations and attempted to levy differential duty along with penalty, aggregating to the said amount of ₹22.79 crore.

Shree Digvijay Cement, however, maintained that its actions were in full compliance with prevailing excise notifications:

• Notification No. 04/2006 dated 1st March 2006

• Amended by Notification No. 04/2007 dated 1st March 2007

These notifications allowed manufacturers to supply cement at a concessional rate to certain classes of buyers under specific conditions. The company argued that MRP printing was not mandatory under the said conditions.

Legal Timeline and Progression

After the initial demand in 2011, the company pursued legal remedy by approaching the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). On 3rd June 2019, the CESTAT delivered a judgment in favour of the company, holding that the excise department's demand and penalty had no merit.

Unwilling to accept the verdict, the Commissioner of Central Excise and Service Tax escalated the matter to the Supreme Court of India, filing an appeal challenging the CESTAT ruling.

Now, with the Supreme Court dismissing the appeal via an order dated 29th April 2025 (received by the company on 7th May 2025), the matter has finally been laid to rest in favour of Shree Digvijay Cement.

Implications of the Supreme Court Verdict

The verdict brings significant financial relief to the company by eliminating a contingent liability of ₹22.79 crore. The dismissal of the appeal not only upholds the company’s compliance with applicable excise notifications but also clears its name of any alleged wrongdoing or violation of statutory provisions.

This ruling further strengthens the company’s position with respect to regulatory compliance and removes a potential risk from its financial statements. Given that no violation or contravention was found, the order reiterates the company’s due diligence and adherence to applicable laws during the supply of cement during the relevant period.

Company’s Disclosure and Compliance

In accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in line with the latest SEBI circular issued on 13 July 2023, Shree Digvijay Cement has formally notified stock exchanges—BSE and NSE—of the Supreme Court’s decision. The company has also uploaded the disclosure on its official website.

This proactive disclosure demonstrates the company’s commitment to transparent corporate governance and investor communication.

Details as per SEBI Circular and Schedule III Requirements

Below is a summary of the disclosure made by Shree Digvijay Cement in the prescribed format:

• Authority: Hon’ble Supreme Court of India

• Order Details: Dismissal of appeal against favourable CESTAT order

• Litigation Origin: Demand notice of ₹22.79 crore for excise duty + penalty on supplies without MRP

• Date of Order: 29th April 2025 (received on 7th May 2025)

• Violation: None – company acted within excise notification guidelines

• Financial Impact: Eliminates potential liability of ₹22.79 crore

Industry and Legal Context

In the cement industry, sales to institutional and industrial buyers are often made at concessional rates. The legal requirement to print MRP on packages is typically tied to retail sales, not bulk or industrial supplies. The exemption provided by the cited notifications allows such transactions to occur without MRP labeling, provided the goods are sold directly to such buyers and not through retail channels.

The department’s misinterpretation of this nuance led to the dispute in question. The Supreme Court’s decision reinforces this understanding and provides clarity on how such supplies are to be treated under the excise framework.

About Shree Digvijay Cement Company Limited

Shree Digvijay Cement, listed on both BSE (Code: 502180) and NSE (Symbol: SHREDIGCEM), is a reputable player in the Indian cement industry. It has a strong history of legal compliance and operational efficiency. The current decision only strengthens its standing in the market and further builds trust among stakeholders.

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