Sun Pharma Advanced Research Company won a case for a ₹27.51 crore CENVAT credit refund on Sunday (October 4). The Mumbai tribunal dismissed the Revenue's appeal, confirming the company’s entitlement to the funds plus interest. This decision finally settled the long-standing litigation that the firm first disclosed on August 14, 2023.

On Friday (October 1), shares of Sun Pharma Advanced Research Company Ltd ended at ₹194.90, down by ₹2.30, or 1.17%, on the BSE.

Sun Pharma Advanced Research Company Ltd(SPARC) on Sunday (October 4) said the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai, has upheld an earlier order in favour of the company and confirmed its entitlement to a refund of accumulated CENVAT credit worth ₹27.51 crore, along with consequential interest, where applicable.

The tribunal dismissed the Revenue's appeal, bringing the litigation disclosed by the company before CESTAT to a decision in SPARC's favour. The company said the tribunal upheld the Order-in-Appeal dated April 27, 2018, which was passed in favour of SPARC.

"The Tribunal has upheld the Order-in-Appeal dated 27.04.2018 passed in favour of the Company and confirmed the company's entitlement to refund of accumulated CENVAT credit along with consequential interest, where applicable for an amount of Rs 2751 Lakh. Accordingly, the litigation stands decided in favour of the company and the Revenue's appeal has been dismissed," according to a stock exchange filing.

The refund pertains to accumulated CENVAT credit of ₹2,751 lakh, along with consequential interest, where applicable. SPARC had disclosed the ongoing litigation in an intimation dated August 14, 2023. The company said the litigation stands decided in its favour following the tribunal's order and the dismissal of the Revenue's appeal.

The company said there was no litigation against key management personnel, its promoter or ultimate person in control in relation to the matter. It also said the settlement provisions were not applicable.

First Quarter Results

The company reported a net loss of ₹20.78 crore for Q1, compared with a loss of ₹51.87 crore in the year-ago quarter. Revenue rose to ₹40 crore from ₹9.6 crore a year earlier.

The company’s EBITDA loss also narrowed to ₹27 crore, compared with an EBITDA loss of ₹48.2 crore in the corresponding quarter last year.

Sun Pharma Advanced Research Company is a pharmaceutical research and development company focused on developing innovative medicines and therapies.

On Friday (October 1), shares of Sun Pharma Advanced Research Company Ltd ended at ₹194.90, down by ₹2.30, or 1.17%, on the BSE.