United Spirits Limited (UNITDSPR) has received a favourable order from the Customs, Excise & Services Tax Appellate Tribunal (CESTAT), Bangalore. The order, dated 9th June 2025, pertains to the financial years 1997-2005 and was received by the company on 2nd March 2026. In this matter, the CESTAT upheld the valuation methodology employed by United Spirits. The Tribunal ruled that the royalty received from Contract Bottling Units (CBUs) is not linked to the price of food flavours sold to them. Consequently, the entire excise duty demand previously raised against the company has been deleted. This favourable ruling means that the Central Excise Duty demand of ₹79.80 crore, along with applicable interest, has been reduced to NIL. Additionally, a penalty of ₹60.70 crore has also been waived off. The company has stated that the impact on its financial, operational, or other activities is NIL, as the order provides full relief.
