Ambuja Cements edge higher in early trade

Ambuja Cements rose 0.7% to Rs 229 at 9:16 IST on BSE after the company said it has filed a special leave petition in the Supreme Court in a sales tax case in Rajasthan.

The announcement was made after market hours yesterday, 23 December 2014.

Meanwhile, the S&P BSE Sensex was down 2.16 points or 0.01% at 27,504.30.

On BSE, so far 1,458 shares were traded in the counter as against average daily volume of 70,000 shares in the past two weeks.

The stock hit a high of Rs 229.35 and a low of Rs 227.30 so far during the day.

Ambuja Cements said that the company has filed a Special Leave Petition in the Supreme Court, challenging a demand notice for Rs 248 crore arising from disallowance of a sales tax incentive availed by the company in Rajasthan for the period 2001-02 to 2008-09. Ambuja Cements said that the company had availed sales tax incentives under the incentive schemes of the Rajasthan state government for the period 2001-02 to 2008-09 pursuant to the order passed by the Board of Industrial and Financial Rehabilitation (BIFR) while sanctioning the Scheme of Rehabilitation of erstwhile Ambuja Cements Rajasthan which was subsequently merged with Ambuja Cements. Later, the Assistant Commissioner, Commercial Taxes Department, Rajasthan issued demand notices on the company for Rs 248 crores (including the interest of Rs. 134 crores) by rejecting the company's claim of availing sales tax incentives under the BIFR order. The company had subsequently filed Writ Petitions in the Jodhpur bench of the Rajasthan High Court challenging the demand notices. On 19 December 2014, the Rajasthan High Court passed an order dismissing the writ petitions filed by the company.

Ambuja Cements' net profit surged 44% to Rs 239.06 crore on 9.2% growth in net sales to Rs 2187.55 crore in Q3 September 2014 over Q3 September 2013.

Ambuja Cements is engaged in manufacturing and marketing cement and clinker for both domestic and exports.

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