Tax Tribunal Orders Material Subsidiary of Lemon Tree Hotels Limited for Service Tax and Penalty
Lemon Tree Hotels Limited has received an order from a tax tribunal regarding its material subsidiary, M/s Fleur Hotels Limited. The ruling involves a demand for service tax and penalties under Section 76 and 77(2) of the Finance Act, 1994.The order was issued by the Customs, Excise and Service Tax Appellate Tribunal, Regional Bench at Hyderabad, on June 03, 2026. The tribunal confirmed a demand amounting to Rs. 33,54,487/- for service tax, along with associated penalties under Section 76 and 77(2) of the Finance Act, 1994.
The tax liability pertains to the period spanning July, 2012, through March, 2013. The underlying violation detailed in the order is the incorrect availing of CENVAT credit on Maintenance and Repair Service, Internet Service, and Courier Service.
Regarding the business impact, the company stated that there is no material effect on financial operations for Fleur Hotels Limited, other than the specific amount specified by the tribunal. The subsidiary is currently evaluating all available legal remedies and plans to initiate appropriate legal action in due course.
LEMONTREE Stock Price Movement
Lemon Tree Hotels Limited shares slipped by 0.25% on Wednesday, settling at ₹110.56 after trading in the equity market. The stock was handled for 1.64 million shares during the session.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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