Relief for Morepen Labs, Himachal HC Quashes Rs 117.94 Crore GST Recovery Notice
New Delhi: The Himachal Pradesh High Court at Shimla has quashed a show-cause notice issued against Morepen Laboratories Limited seeking recovery of Rs 117.94 crore towards an alleged excess Goods and Services Tax (GST) refund, along with applicable interest and penalty.
The court passed its judgment and order on October 12, 2026, disposing of the company's writ petition in its favour.
The case relates to a show-cause notice issued by the Office of the Commissioner, Central GST and Central Excise Commissionerate, Shimla, on December 2, 2025. The notice sought recovery of Rs 117,94,03,452, along with applicable interest and penalty, on the grounds of an alleged excess GST refund claimed by the company.
Morepen Laboratories had previously informed the stock exchanges about the show-cause notice on December 4, 2025, and the stay granted by the Himachal Pradesh High Court at Shimla on January 8, 2026. The latest order quashes the notice and resolves the company's writ petition in its favour.
The show-cause notice alleged that Morepen Laboratories had contravened Section 54 of the Central Goods and Services Tax (CGST) Act, 2017, read with Rule 89 of the CGST Rules, 2017, by erroneously claiming an excess GST refund under Rule 89(4) of the CGST Rules, 2017. The High Court's judgment dated October 12, 2026, quashed the notice issued by the tax authority.
According to the company's regulatory filing, the court order has no impact on the company's financials, operations or other activities. The disclosure does not report any additional financial or operational implications arising from the order.
Morepen Laboratories submitted the details in an annexure accompanying its regulatory communication, in accordance with Regulation 30 and the relevant Securities and Exchange Board of India (SEBI) master circular dated January 30, 2026, along with the applicable Industry Standards Note.
Morepen Laboratories Limited is a pharmaceutical company with its registered office at Morepen Village, Malkumajra, Nalagarh Road, Baddi, Solan district, Himachal Pradesh.
