Tata Steel Wins Supreme Court Case on ₹890 Cr Tax Demand

Tata Steel Limited has successfully challenged a tax demand of ₹890,52,10,202/- along with an equal penalty and applicable interest, related to irregular availing of Input Tax Credit (ITC) for FY2018-19 to FY2020-21. The Supreme Court of India, vide its order dated August 25, 2026, set aside the Show Cause Notice and the Order-in-Original. The court granted liberty to the tax department to initiate fresh proceedings under Section 74 of the CGST Act, provided foundational facts are established and proceedings are initiated before February 28, 2027. The company had argued that the tax credit was claimed in a subsequent permissible financial year and that the notice was issued without jurisdiction and was time-barred.