Vedanta Faces ₹15.43 Lakh Tax Penalty from Orissa GST Dept Over 2016-17 Excise Duty

Vedanta Ltd has received a penalty order of ₹15.43 lakh from the Assistant Commissioner of GST & Central Excise, Jharsuguda, Orissa. The notice relates to an issue from FY2016-17 concerning the payment of Central Excise Duty and the alleged misuse of Central Value Added Tax (CENVAT) credits.

Tax Demand Includes Interest

In addition to the penalty, the tax department has also demanded the payment of tax and applicable interest on the same matter. Vedanta stated in its exchange filing that it received the order on July 23, 2025, and it was originally issued on June 19, 2025.

Company Plans to Appeal

Vedanta plans to challenge the penalty by appealing to the appropriate authority. It also mentioned that it does not expect any material financial impact from this penalty.

Previous Tax Penalties

This isn’t the first time Vedanta has faced such tax issues:

• On May 21, the company received a ₹1.8 crore penalty from Coimbatore GST authorities related to CENVAT use between February 2010 and March 2011.
• On May 16, it was fined ₹146 crore by the Visakhapatnam tax department over non-payment of Special Additional Excise Duty concerning Videocon’s shares.

Vedanta Wins Bid for Karnataka Iron Ore Mine

Separately, Vedanta recently emerged as the preferred bidder for the Janthakal Iron Ore Mine in Karnataka. The mining area spans 71.16 hectares, and the final licence will be granted after necessary clearances and payment of guarantees.

About Vedanta Limited

Vedanta Limited is a multinational mining company based in Mumbai, India. It primarily operates in the mining of iron ore, gold, and aluminium across states like Goa, Karnataka, Rajasthan, and Odisha.

Read More: LIC Ties Up with Govt to Empower Rural Women via Bima Sakhi Yojana.

Vedanta Share Price Movement

As of July 25, 2025, Vedanta share price (NSE: VEDL) is trading at ₹444.40, down 1.54% for the day. The stock has a market capitalisation of ₹1.74 lakh crore and a P/E ratio of 10.96. Its dividend yield stands at 8.89%, and the latest quarterly dividend amount is ₹9.88. The stock's 52-week high is ₹526.95, while the 52-week low is ₹363.00.

Conclusion

Vedanta continues to face scrutiny over past tax practices, with the latest ₹15.43 lakh penalty adding to its list. However, the company is actively appealing the decisions and maintains that these developments won't have a significant financial impact. Meanwhile, its successful bid for the Janthakal mine shows it remains focused on expanding its core business operations.

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