Page 338 - Tata_Chemicals_yearly-reports-2021-22

Integrated Annual Report 2021-22

46. Commitments
` in crore
As at As at
Particulars
March 31, 2022 March 31, 2021
Estimated amount of contracts remaining to be executed on capital account and not provided
for 830.81 628.06

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
Particulars
March 31, 2022 March 31, 2021
(i) Excise, Customs and Service Tax @ 82.77 144.28
(ii) Sales Tax / GST @ 51.67 49.97
(iii) Labour and other claims against the Group not acknowledged as debt 15.64 32.16
(iv) Income Tax
(pending before Appellate authorities in respect of which the Group is in appeal) ** 895.00 785.41
(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
Item (vi) above includes ` Nil (2021: ` 34.75 crore) relating to discontinued operations.
(b) Land rates Demand for ` 677.53 crore (KShs 10.28 Billion) (2021: ` 687.28 crore (KShs 10.28 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
Subsidiary 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 ` 677.53 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) In respect of UK operations, there are certain ongoing claims from customers/vendors for potential non compliance with contractual
matters. In the opinion of management, after taking appropriate legal advice, the amounts are presently not determinable and
liability, if any, is not considered to be probable at this stage and hence these have been disclosed as a contingent liability.
(d) Various claims pending before Industrial Tribunals and Labour Courts of which amounts are indeterminate.
** The Group has on-going disputes with income tax authorities mainly pertaining to disallowance of expenses and the computation
of, or eligibility of the Group’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 Group.
@ 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 Group.
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 Group 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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