1:10 Stock Split: This Logistics Company Hits Upper Circuit On Victory Over Legal Dispute; Do You Own?

Shares of Tiger Logistics witnessed a remarkable surge, hitting a 5% upper circuit at Rs 58.69 per share on the Bombay Stock Exchange. This surge comes on the back of a favourable ruling received by Tiger Logistics (India) Limited, an international logistics company, in a longstanding service tax dispute. The company's stock has been on an upward trajectory, gaining nearly 50% over the past year.

Tiger Logistics announced the positive ruling, which brings closure to a legal battle that has been ongoing since the confirmation of a demand for Service Tax amounting to Rs 5.65 crore. This demand, pertaining to the markup/differential freight in the sale of space for export cargo, container detention charges, toll tax, and other services provided, was challenged by the company.

The legal journey saw initial setbacks, with a confirmation of the demand by the Commissioner, CX & GST, Delhi East. However, subsequent legal interventions including a ROM Application and an appeal to the CESTAT appellate authority led to a breakthrough.

In a significant turn of events, the CESTAT set aside the demand for service tax on various charges, remanding the issue of re-quantification of the demand for service tax back to the Commissioner. The recent Order-in-Original dated 27.03.2024, issued by the Commissioner, signifies a victory for Tiger Logistics as it accepted the company's claim for abatement and re-quantified the demand of service tax to the amount already paid.

Expressing his elation over the favourable outcome, Mr. Harpreet Singh Malhotra, Managing Director of Tiger Logistics (India) Limited, emphasized the importance of the ruling. He stated, "This ruling signifies a significant win for our company and underscores our steadfast commitment to compliance and integrity."

Tiger Logistics is a player in the international logistics arena, providing solutions including freight forwarding, transportation, and customs clearance. The company's presence with more than 50 agents and partners worldwide enables it to cater to various industries such as automotive, engineering, textiles, pharmaceuticals, commodities, and FMCG.