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

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

HC has dismissed the tax authorities’ appeal and upheld CESTAT Mumbai’s ruling in favour of United Breweries, bringing the Rs 21.92 crore Service Tax demand to Nil.

Bombay High Court Upholds CESTAT Order

authorSaloni KumaridateSep 5, 2026
Last update on Sep 5, 2026

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.

Aries Agro Faces Rs 3.96 Crore GST Demand Over ITC Availment from Retrospectively Cancelled Vendors

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.

ITAT Restores Appeal After Notices Not Sent To Form-35 Email, Also Directs Plantation Of 500 Native Trees

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).

About Author

LinkedIn

Saloni Kumari

Content Writer

Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].
StudyCafe
Delhi, Delhi, India
2699
Up Next

Loading suggestions…