Dalmia Cement Fights Rs 108 Crore Tax Demand

Dalmia Cement (North East) Ltd has approached the Guwahati High Court to challenge tax assessment orders totalling over ₹108 crore.

The company has filed a writ petition contesting the Income Tax Department’s demands for the assessment years 2022-23 and 2023-24, citing violations of procedural fairness and a lack of opportunity to present its case. The tax demands—₹55.56 crore for AY 2022-23 and ₹53 crore for AY 2023-24—were issued by the National Faceless Assessment Centre (NFAC) under the Central Board of Direct Taxes. In its petition, the company has strongly objected to what it calls a “clear breach of natural justice,” alleging that the assessments were finalised without affording the company an adequate hearing. Officials from the company have maintained that their representations and supporting documentation were not sufficiently considered during the faceless proceedings.

Industry experts familiar with the matter note that this is not an isolated case. The NFAC model, launched to improve transparency and reduce direct interaction between taxpayers and officers, has been under scrutiny for instances where due process may have been compromised. Legal analysts argue that while the intent behind the faceless system is commendable, execution gaps must be addressed to ensure taxpayers’ rights are not sidelined. A regulatory filing by the company stated that it possesses strong legal grounds supported by precedents and factual accuracy. It also expressed optimism that the Guwahati High Court would intervene to ensure the integrity of the assessment process and restore faith in institutional justice.

The legal tussle holds significance beyond just corporate taxation. Dalmia Cement, a key player in infrastructure development in the North East, is closely linked to ongoing projects that directly impact sustainable urban growth in the region. Disruptions to its operations or financial planning could inadvertently affect infrastructure delivery timelines and costs, particularly in smaller, rapidly urbanising cities. In recent years, cement manufacturing and infrastructure development have come under increased scrutiny for their environmental impact. Companies like Dalmia Cement have made public commitments towards low-carbon operations and resource efficiency. Tax-related disruptions, if prolonged, could undermine the momentum on sustainability goals, especially when tied to green building and eco-friendly urban expansion.

Urban policy advisors have also pointed out that excessive or abrupt tax enforcement can deter private sector participation in long-term infrastructure ventures, especially in economically sensitive zones such as the North East. In this context, the outcome of Dalmia Cement’s petition could set an important precedent for balancing revenue administration with the need to support sustainable development and industrial confidence. The Guwahati High Court has admitted the writ and is expected to hear the matter in the coming weeks. Meanwhile, the cement major continues to cooperate with authorities while seeking judicial recourse to safeguard what it deems a fair hearing process.

This case serves as a reminder that while technological reforms like faceless assessments are critical in modernising India’s tax ecosystem, they must evolve with built-in checks that uphold fairness, especially when public interest and sustainable urbanisation are at stake.

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Dalmia Cement Fights Rs 108 Crore Tax Demand