United Spirits Wins Full Relief in Long-Running Excise Duty Dispute

United Spirits Limited ( (IN:UNITDSPR) ) has shared an announcement.

United Spirits Limited has received a favourable order from the Customs, Excise & Service Tax Appellate Tribunal in Bangalore concerning an old excise duty dispute for financial years 1997 to 2005. The tribunal upheld the company’s valuation methodology, ruling that royalty from contract bottling units is not linked to the price of food flavours sold, thereby fully deleting the excise duty demand, related interest and penalties.

With the Central Excise duty claim of INR 79.80 crore plus interest and a penalty of INR 60.70 crore reduced to nil, the company reports no adverse financial or operational impact from this matter. The resolution removes a long-standing contingent liability and clarifies a key valuation issue, improving regulatory certainty for United Spirits and reducing overhang for its stakeholders.

More about United Spirits Limited

United Spirits Limited is a leading Indian alcoholic beverages company focused on the production, marketing and distribution of spirits. The company operates across multiple price segments in India’s liquor market, with a strong portfolio in whisky and other branded spirits catering to both mass and premium consumers.

Average Trading Volume: 54,876

Technical Sentiment Signal: Hold

Current Market Cap: 994.3B INR

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