United Breweries Secures Full Relief from Bombay High Court in Rs 21.92 Crore Service Tax Dispute:

The Bombay High Court has passed an order in favour of United Breweries Limited in a matter of the Service Tax demand of Rs 21.92 crore, along with applicable interest and penalties.

Previously, the tax authorities had raised a Service Tax demand of Rs 21.92 crore (along with applicable interest and penalties) on the company for the period September 2009 to November 2011. The same demand was challenged before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, wherein the company's appeal was allowed, and a final decision was announced in its favour.

The tax authorities, being aggrieved by the CESTAT's order, filed an appeal before the Honourable Bombay High Court, challenging the order passed by the CESTAT, Mumbai, in favour of Millennium Beer Industries Limited (MBIL), which was later merged with United Breweries Limited (UBL) with effect from April 1, 2010.

The tax authorities had argued that "MBIL's contract brewing activities during the relevant period constituted 'Business Auxiliary Service' and were liable to Service Tax." According to the company, the likely financial implication of the present action is reduction of tax demand/contingent liability from Rs 21.92 crore to Nil.

The High Court has dismissed the tax authorities' appeal vide an order dated September 04, 2026, and sustained the order of CESTAT, Mumbai.

United Breweries Limited has made the aforementioned disclosure to the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE) via an Intimation dated September 04, 2026, in pursuance of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations).