The dispute relates to a demand-cum-show cause notice issued by the Office of the Commissioner of CGST and Central Excise, Jamshedpur, on June 24, 2025, alleging irregular availing of ITC under provisions of the CGST, JGST and IGST Acts. The notice sought recovery of ₹890.52 crore in tax, along with equivalent penalty and applicable interest.
The company said it had made detailed submissions before the adjudicating authority, but an order dated December 26, 2025, confirmed the tax demand of ₹890.52 crore, the penalty and applicable interest.
According to Tata Steel, there was no excess ITC availed, and the differences arose mainly due to credits about one financial year being availed in subsequent financial years, which it said is permissible under GST laws. The company also argued that the notice was issued without jurisdiction and was barred by limitation.
Following the order, Tata Steel filed a writ petition before the Jharkhand High Court in February 2026.
The High Court disposed of the petition in April 2026, granting liberty to the company to approach the appellate authority.
Aggrieved by the High Court order, the company filed a Special Leave Petition before the Supreme Court.
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Tata Steel said the matter was heard on May 19, 2026, and the apex court has now issued notice to the respondents and stayed all further proceedings in the matter until the next hearing.
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Shares of Tata Steel Ltd ended 0.79% higher at ₹208.64 on the NSE on Thursday, gaining ₹1.63 during the session.
