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Sun Pharma Advanced Research Wins ‘28 Crore CENVAT Credit Refund Case at CESTAT
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CNBC TV18•04-10-2026, 14:58
Sun Pharma Advanced Research Wins ‘28 Crore CENVAT Credit Refund Case at CESTAT
- •Sun Pharma Advanced Research Company Ltd (SPARC) secured a significant victory as the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai, upheld its entitlement to a CENVAT credit refund of ‘27.51 crore, plus interest.
- •CESTAT dismissed the Revenue's appeal, confirming an earlier Order-in-Appeal dated April 27, 2018, which favored SPARC.
- •The refund pertains to accumulated CENVAT credit of ‘2,751 lakh, along with applicable interest, resolving litigation previously disclosed by the company.
- •SPARC clarified that there was no litigation against key management personnel, promoters, or ultimate persons in control regarding this matter, and settlement provisions were not applicable.
- •In Q1, SPARC reported a narrowed net loss of ‘20.78 crore (down from ‘51.87 crore year-on-year) and increased revenue to ‘40 crore (up from ‘9.6 crore), with EBITDA loss also decreasing.
Key Questions Answered
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Mumbai dismissed the Revenue's appeal and upheld an earlier Order-in-Appeal from April 27, 2018, confirming SPARC's entitlement to a CENVAT credit refund of ₹27.51 crore along with consequential interest.
The company reported a reduced net loss of ₹20.78 crore for the quarter compared to a loss of ₹51.87 crore in the previous year, while revenue increased to ₹40 crore from ₹9.6 crore.
SPARC previously disclosed the ongoing litigation concerning the CENVAT credit refund in a stock exchange intimation dated August 14, 2023.
