MRPL Wins High Court Case, ₹2173.77 Cr CENVAT Credit Dispute Dismissed

Mangalore Refinery and Petrochemicals Ltd (MRPL) announced that the High Court of Karnataka dismissed an appeal filed by the Department against a CESTAT order, which was previously issued in MRPL's favor. The case involved the denial of CENVAT Credit amounting to ₹21,73,76,67,082 (₹2173.77 Crore), plus applicable interest and penalty, for the period April 2010 to December 2014. The dispute centered on CENVAT Credit availed on capital goods used in manufacturing plant and machinery embedded in the earth, which the Department argued constituted immovable property. The High Court's decision upholds the CESTAT order, resulting in no financial implication for MRPL, as no demand existed following the favorable CESTAT ruling.