Lemon Tree Subsidiary Faces ₹33.5 Lakh Tax Demand

Lemon Tree Hotels Ltd's material subsidiary, Fleur Hotels Limited, has received an order from the Customs, Excise and Service Tax Appellate Tribunal, Hyderabad. The tribunal has confirmed a demand for service tax amounting to ₹33,54,487, along with penalties under Sections 76 and 77(2) of the Finance Act, 1994, for the period July 2012 to March 2013. The alleged contravention relates to the incorrect availment of CENVAT credit on maintenance, internet, and courier services. The company stated that there is no material impact on its financial or operational activities beyond the specified amount and is evaluating legal remedies.