Akzo Nobel India announced it received an appeal order dated July 9, 2025, from the CESTAT, Chandigarh, which completely set aside a tax demand related to the wrong utilization of Education Cess and Secondary Higher Education Cess. The company received the order on August 12, 2025. The original order was issued by the Central Excise and Service Tax Department, Mohali, on March 25, 2021.
The tax demand, including interest and penalty, has been completely set aside. The total relief granted amounts to ₹11.19 lakhs plus additional interest, against the original demand order. Consequently, the original Demand Order stands annulled.
The initial order from the Central Excise and Service Tax Department, Mohali, pertained to the period 2015-2017. It disallowed the wrong utilization of Education Cess and Secondary Higher Education Cess under Rule 14 of the Cenvat Credit Rules, 2004, and demanded a tax payment of ₹5,58,325 plus applicable interest and penalty.
In response to the initial order, the Company submitted its reply along with supporting documents within the specified timeframe.
The total relief granted amounts to ₹11.19 lakhs plus additional interest, against the original demand order as aforesaid.
