If the High Court rules in favour of the Principal Commissioner of the CGST Commissionerate, the company may have to face an Rs 89.32 crore demand along with Rs 6.24 crore another demand.
Nidhi | Mar 25, 2026 |
Nectar Lifesciences Faces New Litigation from CGST Authority
The company, Nectar Lifesciences Ltd., has shared an update regarding ongoing litigation involving the company. The company has been informed about the civil writ petition filed by the Principal Commissioner of CGST Commissionerate, Ludhiana, with the Punjab and Haryana High Court, challenging a previous order by the Commissioner (Appeal).
Earlier, on May 25th, 2025, the Commissioner (Appeal) passed an order that upheld a demand of Rs 17.06 lakh in ineligible Input Tax Credit (ITC) and levied an equal penalty. However, the CIT(A) also deleted a balance demand of Rs 89.32 crore along with the interest and penalty.
Additionally, it had also sent one issue involving a demand of Rs 6.24 crore to the proper officer for fresh consideration. The CIT(A) had cleared the company and its executives of certain personal penalties. However, the Principal Commissioner of the CGST Commissionerate, Ludhiana, has now filed a petition before the Punjab and Haryana High Court, challenging the CIT(A)’s order. The Principal Commissioner of the CGST Commissionerate wants the court to grant an interim stay on the operation of the order.
| Particulars | Details |
| Opposite Party | Principal Commissioner of CGST, Ludhiana |
| Case Status | Civil writ petition filed challenging CIT(A)’s Order |
| Next Hearing Date | April 28, 2026 |
| Confirmed Liability | Rs 17.06 lakh ITC plus an equal penalty |
| Dropped Demand | Rs 89.32 crore (with interest & penalty) |
| Remanded Amount | Rs 6.24 crore for fresh adjudication |
| Personal Penalties Quashed | Rs 25,000 each on 3 individuals |
Nectar Lifesciences does not agree with the issues raised in the writ petition. The company said that it will file an appropriate response before the Hon’ble High Court. The matter is scheduled for hearing on April 28, 2026.
As per the company’s estimations, if the High Court rules in favour of the Principal Commissioner of the CGST Commissionerate, the company may have to face an Rs 89.32 crore demand along with interest and penalties and Rs 6.24 crore.
The above information was disclosed by Nectar Lifesciences Ltd. to both stock exchanges under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
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