Ramco Industries Limited has provided an update on its ongoing litigation concerning the West Bengal Tax on Entry of Goods into Local Areas Act, 2012. The company had challenged the validity of this Act, and while a single judge initially ruled it ultra vires and unconstitutional, the West Bengal Tribunal later upheld this in March 2022. However, the Department appealed to the Hon'ble High Court, which ruled in favor of the Government on January 30, 2025. This order was received by the company on February 3, 2025. The entry tax payable for the period of June 2013 to June 2017 was Rs 295.37 Lakhs, with an interest liability of Rs 729.23 Lakhs as of June 30, 2025. Ramco Industries filed an appeal with the Honorable Supreme Court on April 29, 2025. Concurrently, the Government of West Bengal announced a Settlement of Dispute Scheme (SOD Scheme), which the company opted for, submitting Form 1 on August 29, 2025. The company subsequently received Form 2 (Provisional Certificate) for various periods between September 11 and September 18, 2025. As no Form 3 (Departmental Objection) was received within ninety days, the issued Form 2 is deemed final, and the litigation is considered resolved. The company has also applied for and received permission from the Supreme Court to withdraw its case. Under the SOD Scheme, Ramco Industries paid 75% of the entry tax payable, amounting to ₹2.21 crore. The company will benefit from a waiver of 25% of the disputed amount (₹74 Lakhs), along with a waiver of interest and penalty. This intimation was received on January 29, 2026.
