Tax Department Orders Recovery of Erroneously Refunded Amount from Orchid Pharma Ltd
Orchid Pharma Limited has received an Order from the Additional Commissioner of Central Tax regarding the recovery of a previously refunded amount. The order mandates the recovery of Rs. 1,67,07,937/-, along with applicable interest, under Section 11A of the Central Excise Act, 1944.The Authority issued the Order on June 09, 2026, stating that the amount demanded should be recovered as it had been erroneously refunded by the then Assistant Commissioner of Central Excise, Poonamalle Division.
Details pertaining to this recovery action include:
| Particulars | Details |
|---|---|
| Name of Authority | Additional Commissioner of Central Tax - Office of the Commissioner of GST and Central Excise Chennai-Outer Commissionerate |
| Nature of Action | Order confirming demand and recovery of erroneously sanctioned refund amounting to Rs. 1,67,07,937/-, along with interest under Section 11AB of the Central Excise Act, 1944. |
| Date of Order Receipt | June 09, 2026 |
| Violation Detail | The amount demanded was erroneously refunded by the then Assistant Commissioner of Central Excise, Poonamalle Division and is subject to recovery under Section 11A of Central Excise Act 1944. |
The company has conducted a preliminary assessment of the matter. Orchid Pharma Limited believes that the Order, including the associated demand and interest, is unjustified and unsustainable in law and facts. The Company plans to pursue appropriate legal remedies and file an appeal before the competent appellate authority.
In assessing the financial implication, the Company noted that the subject matter of the Order relates to a period prior to the commencement of Corporate Insolvency Resolution Process (CIRP). However, Orchid Pharma was subsequently acquired through an approved Resolution Plan sanctioned by the National Company Law Tribunal. Management views that any liabilities pertaining to the period before the acquisition are appropriately addressed under the terms of the Resolution Plan and applicable law.
Based on this assessment, the Company believes that the order will not have a material impact on its financials, operations, or other activities.
ORCHPHARMA Stock Price Movement
Orchid Pharma Limited shares shed 1.47% in post-market trading, settling today at ₹845.95 as the market session concluded. The stock saw considerable movement throughout the day, with a total traded volume reaching 166,369 shares.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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