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Tata Steel faces ₹1,903-crore demand over dispatch shortfall from Odisha mineThis come close on the heels of Tata Steel receiving a show cause notice cum tax demand notice for ₹1,000 crore over alleged wrong availment of input tax credit. Shares of Tata Steel Ltd ended at ₹163, down by ₹2.85, or 1.72%, on the BSE.By Jomy Jos Pullokaran   July 4, 2025, 7:05:04 PM IST (Published)2 Min ReadTata Steel Limited on Friday (July 4) said it has received a demand letter from the office of the Deputy Director of Mines, Jajpur, regarding a revised assessment related to a shortfall in the dispatch of minerals from its Sukinda chromite block. The demand pertains to the fourth year of the Mine Development and Production Agreement, covering the period from July 23,  2023 to July 22, 2024.

The alleged shortfall has been cited as a violation of Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016. The revised assessment, based on the average sale price declared by the Indian Bureau of Mines, has resulted in a total demand of ₹1,902.72,53,760. This includes the sale value of the shortfall quantity and the appropriation of performance security.

Tata Steel has stated that it believes the demands issued by the state lack justification and substantive basis. The company intends to pursue suitable legal remedies before the appropriate judicial or quasi-judicial forums.

Also Read: Tata Steel Q4 Results: Profit, revenue in line with estimates; ₹3.60 dividend declared

Only last month (June 28), Tata Steel had received a show cause notice cum tax demand notice for ₹1,000 crore over alleged wrong availment of input tax credit.

The company said, the office of the Commissioner (Audit), Central Tax, Ranchi, had proposed to disallow/demand primarily on account of alleged irregular availment of input tax credit in contravention of the provisions of Section 74(1) of the Central Goods and Services Tax Act, 2017/State Goods and Services Act, 2017 read with Section 20 of the Integrated Goods and Services Tax Act, 2017, for the period FY2018-19 through FY2022-23.

Following this show cause notice, the company is expected to show cause before the Additional/Joint Commissioner of Central GST & Central Excise, Jamshedpur, Jharkhand, within 30 days of receipt of the SCN.

Also Read: Tata Steel acquires 1.79 crore shares of T Steel Holdings for₹1,563 crore

Shares of Tata Steel Ltd ended at ₹163, down by ₹2.85, or 1.72%, on the BSE.Continue Reading(Edited by : Shoma Bhattacharjee)Check 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!Tagsshare market todayTata Steel