Castrol shares jump 6% after favourable order on Rs 4,131 crore tax dispute – News Air Insight

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Shares of Castrol India surged 6% on Monday to hit a high of Rs 232.43 on the NSE after the company informed the exchanges about receiving a favourable order in a Rs 4,131 crore tax dispute against Maharashtra Sales Tax Department (MSTD).

Castrol India shares witnessed significant volume action with over 2 crore shares changing hands on the NSE around 1:30 pm.

The company had received a favourable order from Customs Excise & Service Tax Appellate Tribunal (CESTAT) on Friday after market hours.

“CESTAT pronounced an order in favour of the Company rejecting the appeals of MSTD for the period of 9 years i.e. from 2007-08 to 2015-16 and for 2017-18,” the company filing said.

The company had received demand orders amounting to Rs 4,131 crores for the period 2007-08 to 2017-18 (10 years), from the MSTD in relation to movement of goods from its plant/warehouses in Maharashtra to Clearing and Forwarding Agents (CFAs) in other states.


The MSTD alleged that such movements constituted inter-state sales made pursuant to pre-existing customer orders in destination states.Castrol India contested these claims of MSTD stating that the goods were not dispatched under any prior customer orders and that the Company’s tax payment methodology was legally valid. Castrol India shares have rallied nearly 10% in 2025, so far outperforming the Nifty whose returns in the same period stand at 5.5%. However, on a 1-year basis, the counter remains a laggard declining by 16% versus 2% positive returns given by the 50-stock index.

This year’s rally has taken the stock above its 50-day and 200-day simple moving averages (SMAs) of Rs 213 and 209, respectively, according to Trendlyne data..

It has traded with high volatility, with a 1-year beta of 1.1, the Trendlyne data said.

Also Read: Neuland Laboratories shares jump 12% ahead of final dividend

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