High Court quashes major GST notice against Morepen
The Himachal Pradesh High Court quashed a ₹117.94 crore GST recovery notice against Morepen Laboratories, removing the immediate tax and penalty exposure. OI Charts data showed the stock at ₹127.83 on 12 Oct 2026, down 1.3% that session.
pre-market2 sources ↓machine-written, see hownot a recommendation
- MOREPENLAB close
- ₹127.83
- On the day
- -1.33%
- 52-week high
- ₹150.70
- 52-week low
- ₹33.05
The Himachal Pradesh High Court quashed a Central GST recovery notice of ₹117.94 crore against Morepen Laboratories, ruling that the notice had no valid statutory foundation. The judgment, delivered on 12 Oct 2026 by a Bench of Justices Ajay Mohan Goel and Romesh Verma, disposed of the company’s writ petition in its favour. ⚖️
The notice, issued on 2 Dec 2025, sought recovery of ₹117,94,03,452 for the tax period from April 2020 to February 2024, along with applicable interest and penalty. The tax authority had alleged that the company claimed an excess GST refund under Rule 89(4) of the CGST Rules, read with Section 54 of the CGST Act.
The court held that the proceedings were “non-est in the eyes of law”. The dispute centred on Rule 89(4B), which had been omitted through a notification dated 8 Oct 2024 without a saving clause allowing pending proceedings to continue. The ruling removes the immediate recovery claim described in the notice and eliminates the related interest and penalty exposure under that proceeding.
For the pharma and healthcare business, the order removes a material tax overhang relative to the company’s recent market value. It may also improve near-term sentiment by reducing uncertainty around a large contingent liability, although the judgment addresses the validity of this notice and does not change the company’s operating performance.
OI Charts data showed the stock at ₹127.83 on 12 Oct 2026, down 1.3% for the session, with volume of 13,504,386 shares. The stock had declined 5.5% over five sessions but remained up 10.9% over 20 sessions. Its 52-week range was ₹33.05, recorded on 30 Mar 2026, to ₹150.70 on 7 Oct 2026.
Traders will watch the company’s exchange disclosures for any further action by the tax authority, including an appeal or clarification on the judgment. Price action around the recent 52-week high and the ₹117.94-crore tax figure will remain relevant for assessing how the market absorbs the legal relief. 💊
Source: Himachal Scape, 14 Oct 2026
Not investment advice. For informational purposes only.