Kerala High Court Stays GST Show Cause Notice Involving Rs.120.26 Crores Tax Demand
The Hon'ble High Court of Kerala granted a Stay Order on 25-09-2026 to the company.
By ScoutQuest · · 1 min read
- Stay Order Date
- 25-09-2026
- GST Show Cause Notice Date
- 31.07.2026
- Tax Amount Disputed
- Rs.120.26 crores
- Financial Years Covered
- FY 2020-21 to 2023-24
- Dispute Subject
- HSN classification of products
What happened
The company informed the exchange that the Hon'ble High Court of Kerala passed a Stay Order on 25-09-2026 at 4.30p.m. The court stayed the operation, implementation and all further proceedings pursuant to a Show Cause Notice dated 31.07.2026.
The underlying dispute
- The notice was issued by the Additional Commissioner (Audit), Audit Commissionerate, Kochi.
- It was issued under section 74 of the CGST Act, 2017 read with section 20 of the IGST Act, 2017 and corresponding provisions of the KGST Act, 2017.
- It disputes the HSN classification of the company's products for the periods prior to the Advanced Ruling obtained by the company.
- Period covered: financial years 2020-21 to 2023-24.
- Tax amount involved: Rs.120.26 crores.
Company's action
The company shared a writ petition before the Hon'ble High Court of Kerala challenging the Show Cause Notice. This disclosure is in furtherance to its earlier intimation dated 04 August, 2026.
Stated impact
On impact on financial, operational or other activities, the company states that at present it is not expecting any impact.
How to read this
A Show Cause Notice is a tax department's demand asking a company to explain why a tax amount should not be recovered. A stay means the notice cannot be acted upon while the matter is before the court. The dispute itself is not settled by a stay; it remains pending, and the amount involved, Rs.120.26 crores, indicates the size of what is being contested.
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More numbers
- Tax amount involved in Show Cause NoticeRs.120.26crores
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