Now Reading: HP High Court quashes Rs 117.94 crore GST notice against Morepen Labs
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HP High Court quashes Rs 117.94 crore GST notice against Morepen Labs
The Himachal Pradesh High Court on 12 October quashed a show cause notice seeking Rs 117.94 crore in GST recovery from Morepen Laboratories, disposing of the company's writ petition in its favour. The notice, issued by the Central GST Commissionerate in Shimla on 2 December 2025, had alleged that Morepen incorrectly claimed an excess GST refund under Rule 89(4) of the CGST Rules, 2017, violating Section 54 of the CGST Act. The court order was received by the company on 14 October at 3 pm.
Morepen stated the order has no impact on its financials, operations or other activities. The company had previously disclosed the notice to stock exchanges in December 2025 and January 2026, noting that the High Court had granted a stay on recovery proceedings on 8 January 2026. Morepen shares closed at Rs 128.33 on the NSE on 14 October, up 5 per cent.
Indian Opinion Analysis
Both scanx.trade and CNBC-TV18 report the High Court order identically in substance, attributing the same date, amount and company statement to the judgment. scanx.trade adds a speculative section posing three open questions, including whether the GST department might appeal to the Supreme Court. CNBC-TV18 stays with straight disclosure of the court's order and the share price reaction, without forward-looking speculation. The balanced reading is the news itself: the court quashed a large demand, the company reports no financial hit, and the next step, if any, would be an appeal by the department, which neither source says has been filed.
Coverage: 2 sources, 2 neutral
Sources (2): scanx.trade (neutral report), cnbctv18.com (neutral report)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Methodology and corrections.
