The Himachal Pradesh High Court has quashed a show cause notice seeking to recover ₹117.94 crore from Morepen Laboratories over an alleged excess goods and services tax (GST) refund, along with applicable interest and penalties, the company said on Wednesday.
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.
Morepen said the court order would have no impact on its financials, operations or other activities.
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 shares closed at ₹128.33 on the NSE on Wednesday, up ₹6.11, or 5%, from the previous close.