Rajshree Sugars & Chemicals Wins Major Tax Relief as Chennai Commissioner Drops Rs 62.83 Crore Central Excise Proceedings:

Rajshree Sugars & Chemicals Limited receives favorable order from Commissioner of GST & Central Excise, Chennai Outer Commissionerate, dropping Central Excise proceedings initiated against the Company for the period from April 2014 to June 2017.

The order dated 29.10.2026 relates to disputes of exemption claimed on molasses used in the company's manufacturing process and CENVAT credit claimed on molasses. The proceedings were initiated by three notices issued during 2015-2018.

The total amount involved in the case was Rs 6,283.59 lakhs, comprising Rs 2,094.53 lakhs in principal demand, Rs 2,094.53 lakhs in penalty and Rs 2,094.53 lakhs in interest.

In its order, the Commissioner ruled that the company was eligible for the exemption under Notification No. 67/95-CE and the CENVAT credit claimed. Accordingly, all proceedings initiated through the three notices have been dropped, including the demands for interest and penalty.

The company said the order is entirely in its favour and that there will be no financial impact on it. Rajshree Sugars disclosed the development to the stock exchanges under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.