United Breweries Limited Secures Favourable Order from Maharashtra Sales Tax Tribunal
United Breweries Limited has successfully received a favourable order from the Hon'ble Maharashtra Sales Tax Tribunal, Mumbai-VAT, concerning a Second Appeal filed by the company as the appellant. This development concludes significant tax litigation and resulted in a major reduction of the company's contingent liability.The Tribunal passed the favourable order on May 11, 2026. The litigation stemmed from an assessment order under the Central Sales Tax Act, which had been passed by the Deputy Commissioner of Sales Tax, Mumbai, on March 31, 2023. This original order raised a demand of ₹ 275 Crores for the Financial Year 2018-2019.
The legal dispute saw the initial demand subjected to multiple appeals. First, on March 28, 2024, the company successfully represented the matter before the First Appellate Authority, Joint Commissioner (Appeals), which substantially reduced the demand to ₹ 7 Crores. Subsequent legal action before the Tribunal saw the company successfully defend the order of the Joint Commissioner (Appeals), ultimately reducing the outstanding tax demand to NIL.
The outcome confirms a reduction in the company's contingent liability, with no compensation or penalty expected from the company.
A review of the key details regarding the tax litigation is presented below:
| Stage of Litigation | Date | Authority | Action/Outcome | Financial Implication |
|---|---|---|---|---|
| Initial Assessment | March 31, 2023 | Deputy Commissioner of Sales Tax, Mumbai | Raised demand of ₹ 275 Crores (FY 2018-2019). | ₹ 275 Crores |
| First Appeal | March 28, 2024 | Joint Commissioner (Appeals) | Substantially reduced the demand. | Reduced to ₹ 7 Crores |
| Second Appeal (Current) | May 11, 2026 | Maharashtra Sales Tax Tribunal, Mumbai-VAT | Successfully defended the order, reducing the demand. | NIL |
UBL Stock Price Movement
Today, United Breweries Limited shares slipped 0.18% to settle at ₹1410.5 after closing, following a trading session marked by high volume of 181,359 shares. Despite the trading activity, the stock saw a significant sell-off, plummeting all the way to its 52-week low of ₹1382.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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