Ambuja Cements, part of Adani group, got huge relief when Delhi High Court dismissed ₹218 crore stamp duty demand against it.
Delhi High Court Quashes Stamp Duty Demand
Ambuja Cement Limited (ACL), part of the Adani Group, has received significant relief from the Delhi High Court. The court set aside a show cause notice and an order demanding ₹218.87 crore in stamp duty, along with a ₹69 crore penalty.
The issue arose from a merger order dated November 14, 2011. The collector of stamps, Delhi, had directed ACL to pay ₹218.87 crore in stamp duty. However, under a 1937 notification, the company was exempt from paying the duty, even if the merger was filed under Section 391 of the Companies Act, 1956.
The Delhi High Court also highlighted that the show cause notice exceeded the statute of limitations. Consequently, the writ petition filed by Ambuja Cement Limited was allowed, effectively nullifying the stamp duty and penalty demands.
A team from S&A Law Offices, including Vijay K Singh, Adhip Kumar Ray, Kumar Shashwat Singh Sawno, and Simran Sakunia, represented ACL in this legal battle.
Business Expansion and Sustainability Goals
Despite ongoing legal proceedings, Ambuja Cements continues to focus on growth and strategic investments. The company recently acquired Orient Cements and is working towards increasing its production capacity to 97 million tons per annum.
In addition, ACL is exploring the acquisition of ITD Cementation India Limited, a construction enterprise, to enhance project execution quality. This move aligns with the company’s strategy to strengthen its market position.
Sustainability also remains a priority for ACL. The company aims to increase its green energy capacity, targeting 60% of its total power requirements from renewable sources.
This ruling marks a crucial victory for Ambuja Cements while it continues to expand its business and focus on sustainability-driven initiatives.
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