Nectar Lifesciences Faces Litigation Challenge: CGST Ludhiana Files Writ Petition
Nectar Lifesciences faces a civil writ petition filed by CGST Ludhiana challenging a prior appellate order. The petition disputes the dropping of a ₹89.32 crore demand and the remand of a ₹6.24 crore demand. The company contests the petition, with a hearing scheduled for April 28, 2026. Potential liability could be significant.
While the potential liability is significant (₹89.32 crore and ₹6.24 crore), the company is contesting the petition and the final quantum of liability is not yet ascertainable. The outcome is uncertain, making the impact medium.
The company is facing a new litigation challenge where a regulatory body is contesting a favorable appellate order. This introduces uncertainty and potential financial exposure.
Nectar Lifesciences Limited has disclosed a material litigation update concerning a civil writ petition filed by the Principal Commissioner of CGST Commissionerate, Ludhiana, with the Hon’ble High Court of Punjab and Haryana. This petition challenges an order dated May 27, 2025, issued by the Commissioner (Appeal).
The Commissioner (Appeal) order had confirmed an ineligible Input Tax Credit (ITC) amounting to ₹17.06 lakh (₹8.53 lakh CGST and ₹8.53 lakh SGST), along with an equivalent penalty. It also dropped a demand of ₹89.32 crore, along with applicable interest and penalties, and remanded a demand of ₹6.24 crore for de novo adjudication. Personal penalties imposed on Mr. Sanjiv Goyal (Chairman & Managing Director), Mr. R. K. Aggarwal, and Mr. Sandeep Goel were quashed.
The CGST Commissionerate's writ petition seeks to quash the Commissioner (Appeal)'s order and restore the original order. The company strongly contests the contentions in the writ petition and will file an appropriate response. The matter is listed for hearing on April 28, 2026. In the event the High Court allows the writ petition, the company could be exposed to pay the ₹89.32 crore demand along with interest and penalties, and the ₹6.24 crore demand. However, the final quantum of liability is presently unascertainable, and the company reserves the right to appeal to the Supreme Court if necessary.
What to do with a filing like this
Nectar Lifesciences 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 Nectar Lifesciences Limited. Read the original for the full detail.