Nectar Lifesciences Faces ₹89.32 Cr Tax Demand Challenge

Nectar Lifesciences Ltd. has provided an update on a material litigation concerning a tax demand. The Principal Commissioner of CGST Commissionerate, Ludhiana, has filed a civil writ petition with the Hon'ble High Court of Punjab and Haryana, challenging an earlier order by the Commissioner (Appeal). The Commissioner (Appeal) had confirmed an ineligible Input Tax Credit (ITC) of ₹17.06 lakh with penalty, dropped a demand of ₹89.32 crore, and remanded a ₹6.24 crore demand for re-adjudication. The company may be exposed to pay the ₹89.32 crore demand along with interest and penalties, and the ₹6.24 crore demand. The High Court has since remanded the matter back to the Appellate Authority for fresh consideration. The final quantum of liability is presently not ascertainable.