Castrol India shares jumped 3% in early trade on Monday after the company announced a favourable verdict in a long-standing tax dispute with the Maharashtra Sales Tax Department (MSTD), involving ₹4,131 crore under the Maharashtra Value Added Tax (MVAT) regime.
n a regulatory update, Castrol India said it received a favourable ruling from the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on July 11, 2025. The case pertained to the period between FY 2007–08 and FY 2017–18, during which the MSTD had alleged that the company’s movement of goods from its Maharashtra facilities to Clearing and Forwarding Agents (CFAs) in other states amounted to inter-state sales based on pre-existing customer orders.
Castrol India had strongly refuted the claims, maintaining that the goods were not dispatched pursuant to any prior orders, and that its tax practices were fully compliant with applicable laws. The company had already secured favourable orders from the MVAT Tribunal for all 10 years in dispute.
However, the MSTD had escalated the matter to CESTAT for nine of those years (excluding FY 2016–17). With the appellate tribunal now dismissing the state’s appeals, the matter appears to have been resolved conclusively in Castrol’s favour.
Importantly, the company clarified that there will be no financial impact from this development, as it had not made any provisions for the ₹4,131 crore in its books, given the remote probability of an economic outflow.
Following the update, Castrol India shares opened at ₹224.50 and rose to an intraday high of ₹228.80. At the time of writing, the stock was trading up 3% from the previous close.
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