📷 Image: Wikimedia Commons / Sumita Roy Dutta
Business
Himachal High Court Quashes Rs 117.94 Crore GST Notice Against Morepen Labs
✍️ Medical Dialogues
🗓 16 Oct 2026, 11:36 PM
👁 18
The Himachal Pradesh High Court set aside a GST recovery notice worth Rs 117.94 crore issued to pharmaceutical firm Morepen Labs, providing the company with immediate relief.
The Himachal Pradesh High Court on Thursday dismissed a GST recovery notice that sought to recover Rs 117.94 crore from Morepen Laboratories Ltd., a leading Indian pharmaceutical manufacturer. The notice, originally issued by the state tax authorities, alleged that the company had underpaid GST on its sales.
In its judgment, the bench held that the notice was procedurally flawed and that the tax department had not complied with statutory requirements before issuing the demand. Consequently, the court ordered the notice to be set aside, granting immediate financial relief to Morepen Labs.
The decision is expected to have a positive impact on the company's cash flow and may influence similar tax disputes involving other pharmaceutical firms in the region. Morepen Labs has not issued a public comment on the ruling yet.
In its judgment, the bench held that the notice was procedurally flawed and that the tax department had not complied with statutory requirements before issuing the demand. Consequently, the court ordered the notice to be set aside, granting immediate financial relief to Morepen Labs.
The decision is expected to have a positive impact on the company's cash flow and may influence similar tax disputes involving other pharmaceutical firms in the region. Morepen Labs has not issued a public comment on the ruling yet.