Supreme Court Dismisses GST Department's Appeal in Favour of Aarti Drugs Limited
Aarti Drugs Limited has achieved a favorable legal outcome after the Hon'ble Supreme Court of India dismissed the Special Leave Petition filed by the GST Department concerning a protracted tax dispute. The dismissal means the matter stands disposed of, confirming the Company's position in the ongoing litigation.The dispute originated from an order passed by the GST Department and C.Ex. Authority, wherein Aarti Drugs Limited faced allegations related to contravention of Rule 96(10) of CGST Rule. The case involved a proposed demand of IGST amounting to Rs. 230.70 Crores, along with applicable interest and penalty, covering the financial years 2017-18 to FY 2021-22.
The initial order by the GST Authority included several components:
- A demand for erroneous sanctioned IGST refund of Rs. 20.72 Crores under Section 74(9) of the CGST Act, 2017.
- A demand of interest at rates prescribed under Section 50(1) of the CGST Act, 2017.
- Imposition of a penalty amounting to Rs. 20.72 Crores under Section 74(9) and Section 122(2)(b) of the CGST Act, 2017.
The Company challenged this GST order by filing a writ petition with the Hon'ble High Court of Judicature at Bombay. The High Court subsequently passed an order setting aside the aforementioned order of the GST Department and C.Ex. Authority. Subsequently, the GST department filed a Special Leave Petition before the Hon'ble Supreme Court of India challenging this ruling.
The Hon'ble Supreme Court has since dismissed the Special Leave Petition, concluding the legal matter in favor of Aarti Drugs Limited.
Regarding the financial ramifications, the Company stated that there is no impact on its financial, operational, or other activities, given that the order passed by the Hon'ble Supreme Court stands in the Company's favour.
AARTIDRUGS Stock Price Movement
On Monday, shares of Aarti Drugs Limited edged higher, settling at ₹422.55 after posting a 1.63% gain on the day. The stock saw a trade volume of 216,857 shares, trading within a range defined by a low of ₹413.4 and a high of ₹424.4.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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