Castrol India Share Price Jumps 6% After ₹4,131 Crore Tax Dispute Settled in Its Favour

Castrol India witnessed a strong surge in its stock price after securing a favourable judgment in a ₹4,131 crore tax dispute that spanned more than a decade. The resolution brings clarity and relief to the company’s financial outlook, with no monetary liability arising from the legal issue.

₹4,131 Crore Tax Dispute Resolved 

On July 14, shares of Castrol India share price rallied by nearly 6% after the company disclosed a decisive legal victory over the Maharashtra Sales Tax Department (MSTD). 

The Customs Excise & Service Tax Appellate Tribunal (CESTAT) upheld Castrol’s tax practices, dismissing MSTD’s appeals concerning sales tax liabilities for assessment years from 2007–08 to 2015–16 and 2017–18. 

At the core of the dispute were transfers from Maharashtra to other states via Clearing and Forwarding Agents (CFAs), which MSTD treated as taxable inter-state sales. Castrol contended that these transfers were stock movements and not sales made under existing customer orders.

Zero Financial Impact on Castrol India

Even though the dispute involved a huge amount of ₹4,131 crore, Castrol India didn’t set aside any money for it in its financial statements because it was confident about its legal position. The tribunal’s decision has now backed Castrol’s view, so its balance sheet remains unchanged. This ruling confirms that Castrol’s tax approach was correct, removing the risk of any future penalties or backdated liabilities in this case.

Read More: Fake Sellers, Be Aware: Delhi High Court Stops Misuse of Reliance Retail’s ‘Tira’ Brand!

Castrol India Share Price Performance

On July 14, 2025, Castrol India share price opened at ₹224.50 on NSE, above the previous close of ₹219.89. During the day, it surged to ₹232.43 and dipped to ₹223.42. The stock is trading at ₹229.12 as of 12:31 PM. The stock registered a significant gain of 4.20%.

Over the past week, it has moved up by 5.11%, over the past month, it has moved up by 7.75%, and over the past 3 months, it has moved up by 12.37%

Conclusion

Castrol India's legal victory in the ₹4,131 crore tax case has positively impacted its stock price and business outlook. With zero financial implications and a major regulatory hurdle behind it, the company may now focus on strategic growth initiatives with renewed investor confidence.

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