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Castrol India shares gain nearly 6% after winning ₹4,131 crore Maharashtra Sales Tax Department disputeThe case pertained to the period from 2007–08 to 2017–18, during which the Maharashtra Sales Tax Department alleged that the company’s movement of goods from its Maharashtra facilities to Clearing and Forwarding Agents (CFAs) in other states constituted inter-state sales based on pre-existing customer orders.By Jomy Jos Pullokaran   July 14, 2025, 11:45:40 AM IST (Updated)2 Min ReadShares of Castrol India Ltd gained nearly 6% on Monday, July 14, after the company on Friday, July 11, said it received a favourable order from the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) in a long-standing tax dispute with the Maharashtra Sales Tax Department (MSTD) involving ₹4,131 crore under the Maharashtra Value Added Tax (MVAT) regime.

The case pertained to the period from 2007–08 to 2017–18, during which the Maharashtra Sales Tax Department alleged that the company’s movement of goods from its Maharashtra facilities to Clearing and Forwarding Agents (CFAs) in other states constituted inter-state sales based on pre-existing customer orders.

Castrol India contested this claim, stating that the goods were not dispatched under any prior orders and that its tax methodology complied with legal norms. The company had already received favourable orders from the MVAT Tribunal for all ten years under dispute.

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However, the MSTD appealed to the CESTAT for nine of those years, excluding 2016–17. On July 11, 2025, CESTAT rejected Maharashtra Sales Tax Department's appeals and ruled in favour of Castrol India.

There will be no financial impact on the company, as it had not made any provisions for the ₹4,131 crore in its books, considering the likelihood of an economic outflow to be remote.

Castrol India shares gained 5.7% to hit an intraday high of ₹232.43 apiece on Monday, July 14. The stock was up 4.45% at ₹229.68 apiece at 11.40 am. It has gained 8.3% in the past month, 25.62% in the last six months and 12.7% this year, so far.

Also Read: Castrol India boosts brand and innovation spend to drive growthContinue ReadingFirst Published: Jul 11, 2025 6:03 PM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsCastrol Indiashare market today