Ircon International Limited has received interim relief from the Supreme Court of India in an ongoing tax dispute linked to the Ganga Bridge Project.
In an order dated 16 March 2026, the court issued notice to the VAT department and directed that the operation of the Patna High Court’s earlier judgement be stayed until the Special Leave Petitions (SLPs) are decided.
This stay effectively puts on hold the tax demand raised against the company for multiple financial years under dispute.
The matter originates from a common judgement delivered by the Patna High Court on 25 February 2026. The ruling upheld VAT demands raised on Ircon for the period from FY 2010-11 to FY 2016-17, excluding FY 2011-12.
Following this judgement, state tax authorities issued demand notices requiring payment of tax along with interest. The dispute relates to work executed under the Ganga Bridge Project, a key infrastructure contract handled by the company.
The total tax and interest demanded across the relevant assessment years amounts to approximately ₹78.64 crore. The notices specifically relate to 3 writ petitions covering FY 2013-14, FY 2014-15, and FY 2016-17.
In response, Ircon filed Special Leave Petitions numbered 10008-10010 of 2026 before the Supreme Court, challenging the High Court’s decision and the resulting tax liability.
The Supreme Court’s direction stays the enforcement of the entire disputed demand across all 6 financial years involved in the case. This means no immediate payment obligation arises for the company while the matter remains under judicial consideration.
The court has also issued notice to the VAT authorities, signalling that the matter will undergo further examination at the apex level.
The development was disclosed through a regulatory filing dated March 17, 2026. The company had earlier communicated updates on the matter in August 2023 and February 2026, indicating the ongoing nature of the litigation.
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As of March 18, 2026, 11:50 am, Ircon International share price was trading at ₹129.09, a 2.03% increase from the previous closing price.
The stay order pauses the immediate financial impact of the VAT demand, with the final outcome now dependent on the Supreme Court’s decision on the pending petitions.
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Published on: Mar 18, 2026, 1:39 PM IST
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