NCLAT Rejects Appeal of Paradeep Phosphates on Entry Tax Exemption in Odisha
Paradeep Phosphates Limited has announced that the National Company Law Appellate Tribunal (NCLAT) rejected the company's appeal seeking Entry Tax exemption in Odisha. This development follows the NCLAT's order dated May 18, 2026, concerning the rehabilitation scheme sanctioned by BIFR.The litigation involves the company's claim for exemption or remission from Entry Tax within the framework of a rehabilitation scheme that was operational from 2007 to 2014.
According to the company, the dispute was originally sanctioned by BIFR on September 2, 2008, under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985.
Financial and Litigation Status
The company maintained that it was eligible for the remission of Entry Tax for the period spanning 2007 to 2011, a time during which it was classified as a sick industrial company. The company had previously exited the sick industrial status via a BIFR Order dated August 16, 2011.
Financially, the company stated that it has already fully accounted for the potential liability in its books. Regarding the dispute, the company had deposited ₹26 crore under protest, which was raised against a total demand/liability of ₹76 crore.
The NCLAT’s ruling upheld the order passed by the National Company Law Tribunal (NCLT), thereby rejecting the plea of Paradeep Phosphates. The company has indicated that it is taking appropriate steps to file an appeal against this ruling before the Supreme Court.
Despite the NCLAT's decision, Paradeep Phosphates Limited confirmed that it does not anticipate a material impact on the company's financials at this time.
PARADEEP Stock Price Movement
Today, Paradeep Phosphates Limited shares edged higher, closing at ₹123.98 after gaining 2.56% for the day. The stock finished on strong investor conviction, with the trading volume reaching 4.92 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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