Punjab Chemicals and Crop Protection Limited has disclosed a material development in ongoing litigation regarding the refund of IGST amounting to approximately ₹44.96 crore. This disclosure is made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The company had previously disclosed on August 16, 2023, that it received a Show Cause Notice from the office of the Principal Commissioner, Central GST Commissionerate, Ludhiana. The notice proposed recovery of refund of approximately ₹44.96 crore of IGST, along with applicable interest and penalty, alleging contravention of Rule 96(10) of the Central Goods and Services Tax Rules, 2017.
The Hon'ble Punjab and Haryana High Court at Chandigarh, vide its order dated August 14, 2026, passed in CWP-16072-2023 (O&M), titled M/s Punjab Chemicals and Crop Protection Ltd. v. Union of India & Others, has disposed of the writ petition filed by the company. The court disposed of the matter in terms of the judgment of the Hon'ble Bombay High Court in Hikal Ltd. v. Union of India, (2025) 34 Centax 249 (Bom.).
The company received the certified copy of this order on August 26, 2026. This judicial determination constitutes a favorable development for the company and provides relief in respect of the IGST demand of approximately ₹44.96 crore, along with the consequential interest and penalty proceedings.
Financial Impact
The company states that no liability towards the aforesaid demand of ₹44.96 crore is presently expected to crystallize against the company, subject to giving effect to the order by the concerned GST Authority and consequential updation/removal of the demand from the GST records.
Next Steps
The company is presently undertaking necessary consequential steps with the concerned GST Authority to give effect to the judicial determination and for consequential updation/removal of the demand from the GST records.