The Himachal Pradesh High Court quashed a ₹117.94 crore GST show cause notice issued to Morepen Laboratories regarding an alleged excess GST refund. According to reports from CNBC TV18, the notice was issued on December 2, 2025, by the Office of the Commissioner, Central GST and Central Excise Commissionerate, Shimla. In its judgment dated October 12, 2026, the High Court quashed the notice and disposed of the company's writ petition in its favour. Morepen Laboratories received the order at 3 pm on October 14, 2026.
The notice had alleged that the company incorrectly claimed an excess GST refund under Rule 89(4) of the Central Goods and Services Tax (CGST) Rules, 2017, in violation of Section 54 of the CGST Act and Rule 89 of the rules. As reported by CNBC TV18, the notice sought to recover the amount along with applicable interest and penalties. The company had informed stock exchanges about the show cause notice on December 4, 2025, and subsequently disclosed that the High Court had granted a stay on January 8, 2026.
Morepen Laboratories stated that the court order would have no impact on its financials, operations or other activities. According to reports from CNBC TV18, the company emphasized that the ruling would not affect its financial position or business operations. The company's shares closed at ₹128.33 on the NSE on Wednesday, up ₹6.11, or 5%, from the previous close.
The positive court ruling led to a 5% increase in Morepen Laboratories' share price, closing at ₹128.33 on the NSE on Wednesday. As reported by CNBC TV18, the market response reflected investor confidence in the company's legal victory. The share price movement indicates market optimism about the resolution of the GST refund dispute and its potential impact on the company's financial position.
