India, Dec. 1 -- In a relief to Dalmia Cement (Bharat) Ltd, a wholly-owned subsidiary of Dalmia Bharat, the Tamil Nadu-based tax authority has dropped the demand of tax and penalties totalling ?266.3 crore from the company.

In a regulatory filing, Dalmia Bharat said, Dalmia Cement (Bharat) Ltd, had earlier received show cause notices under Section 74 of the Central Goods and Services Tax Act, 2017, Tamil Nadu Goods and Services Tax Act, 2017, from the Sales Tax Officer, Lalgudi, Tiruchirapalli, Tamil Nadu.

The show cause notices pertained to "some differences observed in taxable turnover and amount of ITC for the AY 2019-20 and 2022-23. In the adjudication proceedings, the Department has dropped the proposed demand...," the filing added...