Page 298 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Annual Report 2020-21

46. Commitments ` in crore
As at As at
March 31, 2021 March 31, 2020
Estimated amount of contracts remaining to be executed on capital account and not provided
for 628.06 586.44
Commitment towards partly paid investments - 9.19

47. Contingent liabilities and assets
47.1 Contingent liabilities
(a) Claims not acknowledged by the Group relating to cases contested by the Group and which, in the opinion of the Management, are
not likely to devolve on the Group relating to the following areas:
` in crore
As at As at
March 31, 2021 March 31, 2020
(i) Excise, Customs and Service Tax @ 144.28 88.65
(ii) Sales Tax @ 49.97 53.37
(iii) Labour and other claims against the Group not acknowledged as debt 32.16 31.32
(iv) Income Tax
(pending before Appellate authorities in respect of which the Group is in appeal) ** 785.41 745.65
(v) Income Tax
(decided in Group's favour by Appellate authorities and Department is in further appeal) 15.54 15.54
(vi) Contractual obligation upto 34.75 34.75
Item (vi) above includes ` 34.75 crore (2020: ` 34.75 crore) relating to discontinued operations.

(b) Land rates Demand for ` 687.28 crore (KShs 10.28 Billion) (2020: ` 1,257.48 crore (KShs 17.45 Billion)
On May 3 2019, the High Court delivered its judgement in respect of the petition against a demand for land rates levied on the
Company by the Kajiado County Government during the year. The Court’s judgment quashed this demand in entirety. In its
judgement, the court also ordered that both parties submit themselves to a consultation process to be led by the Cabinet Secretary
for Mining, supervised by the Court in order to agree on the acreage to which land rates should be levied. Following the lapse of
period for negotiations as directed by the High Court, the company proceeded to the court of appeal to seek directions on the land
rates. On December 2 2020, the Kajiado County issued an adjusted demand of ` 687.28 crore (KShs 10.28 Billion) for outstanding
land rates. A similar demand was resent on March 24 2021 which has been objected. In the opinion of management, after taking
appropriate legal advice, the liability is not considered to be probable at this stage and hence it has been disclosed as a contingent
liability.
(c) Various claims pending before Industrial Tribunals and Labour Courts of which amounts are indeterminate.

**The Company has on-going disputes with income tax authorities mainly pertaining to disallowance of expenses and the computation
of, or eligibility of the Company’s availment of certain tax incentives or allowances. Most of these disputes and/or disallowances are
repetitive in nature spanning across multiple years. All the Tax demands are being contested by the company.
@ Excise Duty cases include disputes pertaining to reversal of input tax credit on common input, refund of duty paid under protest. Custom
Duty cases include disputes pertaining to import of capital equipment against scripts, tariff classification issues, denial of FTA benefit. VAT/
CST/Entry Tax cases include disputes pertaining to Way Bill, reversal/disallowance of input tax credit, pending declaration forms. All the Tax
demands are being contested by the company.

It is not practicable for the Group to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the
respective proceedings as it is determinable only on receipt of judgments/decisions pending with various forums/authorities.
The company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and
disclosed as contingent liabilities where applicable, in the Consolidated Financial Statements.

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