High Court remands GST matter to Appellate Authority; possible Rs. 89.32 crore exposure flagged

GST case update: the High Court has remanded the matter back to the Appellate Authority for fresh consideration.

Sat 3 Oct 2026

Possible GST demand exposure

₹89.32 crore demand with interest and penalties

GST demand remanded

₹6.24 crore demand

Confirmed ineligible ITC

₹17.06 lakh (CGST ₹8.53 lakh, SGST ₹8.53 lakh)

High Court order date

September 24, 2026 — remanded to Appellate Authority for fresh consideration

Personal penalties quashed

₹25,000 each

What the company disclosed

This is an update on a long-running GST dispute between the company and the Principal Commissioner of CGST Commissionerate, Ludhiana, Punjab. The disclosure sets out what the GST Appellate Authority decided earlier, what the department then did, and what the High Court has now ordered.

The May 27, 2025 order of the Commissioner (Appeal)

• Confirmed ineligible Input Tax Credit (ITC) amounting to ₹17.06 lakh — CGST ₹8.53 lakh and SGST ₹8.53 lakh — and imposed an equivalent penalty.
• Dropped the balance demand of ₹89.32 crore along with applicable interest and penalties on that issue.
• Remanded the demand of ₹6.24 crore to the proper officer for de novo adjudication in accordance with GST law, with adjustment of taxes and interest already paid.
• Quashed personal penalties of ₹25,000 each imposed on Mr. Sanjiv Goyal (Chairman & Managing Director), Mr. R. K. Aggarwal and Mr. Sandeep Goel (former employees).

What happened after that

• The Principal Commissioner of CGST Commissionerate, Ludhiana, shared a civil writ petition before the High Court of Punjab and Haryana, seeking to quash and set aside that order, to restore the Order-in-Original, and an interim stay on the operation of the order.
• The High Court of Punjab and Haryana, by its order dated September 24, 2026, remanded the matter back to the Appellate Authority for fresh consideration.

The exposure the company has flagged

• In the event the Appellate Authority reconsiders the matter, the company says it may be exposed to pay the ₹89.32 crore demand along with interest therein and penalties, and the ₹6.24 crore demand raised.
• The final quantum of liability is stated to be presently not ascertainable.
• The company states it reserves the right to prefer an appeal before the Tribunal, if required.

What this means in simple terms

The case has gone back to an earlier stage. The order that had dropped the large ₹89.32 crore demand is no longer the last word on that issue, because the High Court has sent the matter back to the Appellate Authority to be looked at afresh. The company describes the outcome as a possible exposure rather than a confirmed amount, and states that the final liability is currently not ascertainable.

Points to keep in mind

• The disclosure relates to a GST demand matter; the amounts stated are demands and possible exposures.
• The next step is with the Appellate Authority, which will consider the matter afresh, and the company retains the option of appealing before the Tribunal if required.

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