Aarti Drugs: Supreme Court dismisses GST Dept's plea against company
Aarti Drugs Limited announced the Supreme Court dismissed the GST Department's Special Leave Petition. The litigation involved a demand of ₹230.70 Crores for FY18-22. The Supreme Court's decision favors the company, with no expected financial or operational impact.
While the outcome is positive and there's no direct financial impact stated, the resolution of a major tax litigation matter can positively influence investor confidence and reduce perceived risk.
The Supreme Court's dismissal of the GST Department's petition is a favorable outcome for the company, resolving a significant litigation.
Aarti Drugs Limited has announced that the Hon'ble Supreme Court of India has dismissed the Special Leave Petition filed by the GST Department. This petition was a challenge against an earlier order by the Hon'ble High Court of Judicature at Bombay.
The litigation originated from a Show Cause Notice received by the company for alleged contravention of Rule 96(10) of CGST Rules, proposing a demand of IGST amounting to ₹230.70 Crores, along with applicable interest and penalty for the fiscal years 2017-18 to 2021-22.
The CGST & C.Ex. Authority had passed an order that included a demand of ₹20.72 Crores for erroneously sanctioned IGST refund and imposed a penalty of ₹20.72 Crores, while dropping a demand of ₹209.98 Crores. The company had challenged this order through a writ petition at the Hon'ble High Court of Judicature at Bombay.
The Hon'ble High Court subsequently set aside the order of the CGST & C.Ex. Authority. The GST department then filed a Special Leave Petition before the Hon'ble Supreme Court of India, which has now been dismissed. The matter stands disposed of by the Hon'ble Supreme Court in favor of Aarti Drugs Limited.
The company has stated that there is no impact on its financial, operational, or other activities as the Supreme Court's order is in its favor.
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Aarti Drugs Limited filed this with the NSE as a statutory disclosure, categorised under litigation updates. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Aarti Drugs Limited. Read the original for the full detail.