Lemon Tree Hotels Limited informed stock exchanges on June 3, 2026 that its material subsidiary Fleur Hotels Limited received an order from the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Regional Bench at Hyderabad. The order confirms a service tax demand of Rs 0.34 crore along with a penalty under Section 76 and 77(2) of the Finance Act, 1994 for the period July 2012 to March 2013.
The tax demand arises from CENVAT credit claimed by Fleur Hotels on maintenance and repair services, internet services, and courier services, which the tribunal determined was wrongly availed. The order was received by the subsidiary on June 3, 2026.
Lemon Tree Hotels stated there is no significant impact on its financial operations beyond the amount specified in the tribunal order. Lemon Tree Hotels noted that Fleur Hotels is evaluating available legal remedies and will pursue appropriate legal action in due course.
The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, read with SEBI master circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The information was submitted to both the National Stock Exchange of India, where shares trade under the symbol LEMONTREE, and BSE Limited where the scrip code is 541233.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.