New Delhi:Zydus Lifesciences Limited has informed the stock exchanges that the Commissioner of Central Goods and Services Tax (CGST), Ahmedabad, has confirmed a demand of Rs 33.50 million along with applicable interest and penalty, relating to alleged wrongful availment of CENVAT credit on sales commission paid to foreign entities. The order, dated September 19, 2025, was communicated to the company on September 24, 2025. The case traces back to multiple show cause notices issued by the Central Excise and Service Tax Authorities, covering the period from March 2008 to June 2017. These notices initially raised a demand of ₹392.47 million for alleged irregular availment of CENVAT credit on input services. After reviewing Zydus Lifesciences’ detailed oral and written submissions, the authorities dropped the bulk of the demand amounting to ₹358.97 million. However, they confirmed the remaining ₹33.50 million with interest and penalty, specifically concerning CENVAT credit claimed on sales commission payments made to foreign entities. Also Read: Zydus Lifesciences Gets CDSCO Panel Nod for Bioavailability Study of Antimalarial Candidate ZY-19489 The order was passed under Rule 14 of the CENVAT Credit Rules, 2004, read with Section 11A of the Central Excise Act, 1944. The disputed amount pertains to the classification of sales commission paid to foreign parties as Business Auxiliary Services, which the tax authorities held ineligible for CENVAT credit during the period under scrutiny. Zydus Lifesciences has clarified in its disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that the company intends to file an appeal against the order. The pharmaceutical major further emphasized that the confirmed demand does not have any material financial impact on its operations or overall financials. Also Read: Zydus Foundation Vice Chairperson Meha Patel appointed as Member of CII National Committee on Art & Culture for 2025-26