Supreme Court Stays Rs 78.64 Crore VAT Demand against Ircon International
Ircon International Limited, a leading Indian engineering and construction company under the Ministry of Railways, recently issued a disclosure to BSE Ltd and NSE Ltd regarding the Supreme Court of India’s order.
Background of the case
The Patna High Court gave a common judgement on February 25, 2026, regarding VAT matters for multiple financial years (FY 2010-11 to FY 2016-17, except FY 2011-12). In this judgement, the court upheld the VAT demands raised against the company.
Following this decision, the tax authorities issued demand notices to IRCON for three specific years. These cases were filed under CWJC No. 11625 of 2019, 3600 of 2020, and 1716 of 2023. The total tax and interest demanded amounts to about Rs 78.64 crore.
The company, IRCON International Ltd, challenged this judgement by filing Special Leave Petitions (SLPs) before the Supreme Court of India.
On March 16, 2026, the Supreme Court issued a notice to the VAT department. It also ordered that the Patna High Court’s judgement will remain stayed until the case is finally decided.
Company’s Disclosure
The above disclosure is made by the company under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”).
