Hindustan Zinc Faces ₹146 Crore Penalty from Visakhapatnam Tax Body

Hindustan Zinc Ltd, a subsidiary of Vedanta Limited, has received a penalty order of ₹145.96 crore from the Office of the Principal Commissioner of Central Tax, Visakhapatnam. The order was dated April 30, 2025, and reached the company on May 15, 2025. The penalty has been issued by the Central GST Commissionerate. While the disclosure mentions contraventions, no specific violations have been detailed in the filings.

As of 10:30 AM on May 19, 2025,  Hindustan Zinc Ltd share price was trading at ₹447.10, a 1.07% increase, with an 8.67% decline over the past 6 months and a 39.36% drop over the past year.

Penalty Details

According to the fillings “The Company in respect of an oil & gas block where it is an operator has received an Order from Office of the Principal Commissioner of Central Tax, Visakhapatnam ("Tax Authority"), confirming penalty of ₹145,95,43,275 along with demand and applicable interest, in relation to non-payment/ delayed payment of Special Additional Excise Duty (SAED) for the period from July-22 to Mar-24.”

 

“Major amount pertains to non-payment of SAED relating to Videocon's share i.e., ₹115 crores.”

“Further, the Company's share of Penalty is INR 6.96 Crores only (i.e. 22.5% of ₹30.94 Crores).”

Fourth Quarter Performance

In Q4 FY25, Hindustan Zinc recorded its highest-ever fourth-quarter revenue of ₹9,087 crore, up 20% year-on-year. EBITDA for the quarter was ₹4,816 crore, up 32%, with a leading margin of 53%. Net profit for Q4 reached a record ₹3,003 crore, up 47%. 

The zinc cost of production during the quarter dropped to a 16-quarter low of $994 per metric tonne, driven by better metal grades, improved coal supply, and operational efficiencies. The company was also included in the Futures & Options segment on the NSE from March 2025.

Read more: Hindustan Zinc Delivers Record Growth in FY25 with Strong Q4 Results and ESG Leadership.

Strong Liquidity Position

As of March 31, 2025, the company had ₹9,482 crore in cash and investments, primarily in high-quality debt instruments. Borrowings stood at ₹10,651 crore, with net debt falling to ₹1,169 crore from ₹4,117 crore in the previous quarter. The company maintained a top AAA credit rating from CRISIL, reflecting a healthy and stable financial position.

Conclusion

The company has acknowledged the receipt of the ₹145.96 crore order. As of now, there is no update on its next steps. Any further action, such as an appeal or settlement, may be shared in future filings, depending on the outcome of the internal assessment or legal review.

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