Nectar Lifesciences Faces Legal Challenge from CGST Commissionerate
Nectar Lifesciences Limited announced that the Principal Commissioner of CGST Commissionerate, Ludhiana, Punjab, has filed a civil writ petition with the Hon'ble High Court of Punjab and Haryana challenging a prior order. The challenge relates to an order dated May 27, 2025, issued by the Commissioner (Appeal).The company intends to vigorously contest the petition and will submit an appropriate response to the High Court. A hearing is scheduled for April 28, 2026.
Background on the Dispute
The situation stems from a previous order by the Commissioner (Appeal) that confirmed ineligible Input Tax Credit (ITC) amounting to ₹17.06 lakh and imposed penalties. The order also dropped a demand of ₹89.32 crore and remanded a demand of ₹6.24 crore for further adjudication.
The Principal Commissioner of CGST Commissionerate is seeking the High Court to either quash and set aside the Commissioner (Appeal)'s order or restore the original order that was previously overturned.
Potential Financial Implications
Should the Hon'ble High Court allow the writ petition, Nectar Lifesciences could potentially be exposed to the following:
- A demand of ₹89.32 crore, including interest and penalties.
- A demand of ₹6.24 crore.
Below is a table summarizing the details of the litigation.
Litigation Details
| Field | Details |
|---|---|
| Listed Entity | Nectar Lifesciences Limited |
| Opposing Party | Principal Commissioner of CGST Commissionerate, Ludhiana, Punjab |
| Forum | Hon'ble High Court of Punjab and Haryana |
| Date of Order | Not Applicable |
| Nature of Action | Civil writ petition challenging the order dated May 27, 2025 |
| Potential Financial Implication | 1. ₹ 89.32 crore demand along with interest and penalties; 2. ₹ 6.24 crore demand raised. |
| Quantum of Liability | Presently not ascertainable. |
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