Ambuja Cements Limited informed the exchanges that it has received an order from the Commissioner of Central Excise & CGST, Bhavnagar, disallowing Cenvat Credit (Input Tax Credit) of ₹21.96 crore, along with interest, and imposing a penalty of an equal amount.
The company said the order, issued under Rule 14 of the Cenvat Credit Rules (CCR) read with Section 11(A) of the Central Excise Act, 1944, pertains to ITC availed on services such as AMC, business auxiliary services, maintenance and repair, manpower recruitment, mobile services, security services, technical testing and analysis, and port-related services at Muldwaraka.
Ambuja Cements stated that it is in the process of filing an appeal before the appropriate appellate authority. Importantly, the company added that it does not foresee any material impact on its financial, operational, or other activities due to this order.