Mumbai, April 9: In a major relief for UltraTech, the Rajasthan High Court has struck down the demand raised by the Goods and Services Tax (GST) Department against the company for unpaid dues of Binani Cement. The court termed the demand illegal and arbitrary.
Binani Cement was acquired by the Aditya Birla Group cement company through corporate insolvency resolution process (CIRP) in 2018 for ₹7,900 crore. Later, it was renamed UltraTech Nathdwara Cement.
On Tuesday, a division bench of Rajasthan High Court comprising Justices Sandeep Mehta and Vijay Bishnoi, while allowing the plea filed by UltraTech, observed that the demand notices are ex-facie illegal, arbitrary and per se cannot be sustained since that was already accounted for at the time of the revival plan approved by the lenders, The Economic Times reported.