19 hours ago
The case pertained to the period from 2007–08 to 2017–18, during which the Maharashtra Sales Tax Department alleged that the company’s movement of goods from its Maharashtra facilities to Clearing and Forwarding Agents (CFAs) in other states constituted inter-state sales based on pre-existing customer orders. Shares of Castrol India Ltd ended at ₹220.00, down by ₹0.90, or 0.41%, on the BSE.
Lubes maker, Castrol India Ltd, on Friday (July 11) said it has received a favourable order from the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) 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.
The case pertained to the period from 2007–08 to 2017–18, during which the Maharashtra Sales Tax Department alleged that the company’s movement of goods from its Maharashtra facilities to Clearing and Forwarding Agents (CFAs) in other states constituted inter-state sales based on pre-existing customer orders.
Castrol India contested this claim, stating that the goods were not dispatched under any prior orders and that its tax methodology complied with legal norms. The company had already received favourable orders from the MVAT Tribunal for all ten years under dispute.
Also Read: Castrol India Q1 profit up 8%, revenue rises 7.3%, margin contracts a bit
However, the MSTD appealed to the CESTAT for nine of those years, excluding 2016–17. On July 11, 2025, CESTAT rejected Maharashtra Sales Tax Department's appeals and ruled in favour of Castrol India.
There will be no financial impact on the company, as it had not made any provisions for the ₹4,131 crore in its books, considering the likelihood of an economic outflow to be remote.
Shares of Castrol India Ltd ended at ₹220.00, down by ₹0.90, or 0.41%, on the BSE.
Also Read: Castrol India boosts brand and innovation spend to drive growth
