Indian automotive major Maruti Suzuki announced that it has received a ₹2.5 crore tax demand from the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh. The company intends to contest the demand in the Supreme Court. Maruti Suzuki stated that even on a revised total demand of ₹25 million, it will be filing an appeal against the order. The company believes that the order will not have a significant impact on its financial, operational, or other activities.

According to the exchange filing, the tax demand is for a four-year period between April 15, 2006, and March 31, 2010, with the original demand of ₹11.5 crore being revised to ₹2.5 crore.

Maruti Suzuki received an order from CESTAT, Chandigarh, partially allowing the company’s appeals filed for the period of April 15, 2006, to March 31, 2010, concerning service tax liability under reverse charge basis on certain services. As a result, the revised total demand stands at ₹25 million against the original total demand of ₹115 million.