Sun Pharma Advanced Research Company Ltd (SPARC) announced on Sunday (October 4) that 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 ₹27.51 crore refund of accumulated CENVAT credit, along with consequential interest where applicable. According to the company's stock exchange filing, the tribunal dismissed the Revenue's appeal, bringing the litigation disclosed by SPARC before CESTAT to a decision in the company's favour. The tribunal upheld the Order-in-Appeal dated April 27, 2018, which was passed in favour of SPARC. As per the company's latest filing, 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 ₹2751 lakh. Accordingly, the litigation stands decided in favour of the company and the Revenue's appeal has been dismissed.
The refund pertains to accumulated CENVAT credit of ₹2,751 lakh, along with consequential interest where applicable. As reported by CNBC TV18, SPARC had disclosed the ongoing litigation in an intimation dated August 14, 2023. The company emphasized that there was no litigation against key management personnel, its promoter or ultimate person in control in relation to the matter, and the settlement provisions were not applicable. The tribunal's decision brings the long-standing litigation to a definitive conclusion in SPARC's favour, with the company stating that the litigation stands decided in its favour following the tribunal's order and the dismissal of the Revenue's appeal.
Despite the legal victory, SPARC reported challenging financial results for the first quarter. According to the company's latest financial disclosure, SPARC reported a net loss of ₹20.78 crore for Q1, compared with a loss of ₹51.87 crore in the year-ago quarter. However, the company showed improvement in operational metrics, with revenue rising 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.
On Thursday (October 1), shares of Sun Pharma Advanced Research Company Ltd ended at ₹194.90, down by ₹2.30, or 1.17%, on the BSE. As reported by CNBC TV18, SPARC is a pharmaceutical research and development company focused on developing innovative medicines and therapies. The company's stock performance reflects broader market conditions despite the positive legal developments, with the tribunal's dismissal of the Revenue's appeal bringing the long-standing litigation to a definitive conclusion in SPARC's favour.
