The Nectar Lifesciences GST case has been remanded to the Appellate Authority for fresh consideration by the Punjab and Haryana High Court, the company said in a BSE filing dated October 3, 2026. The court passed its order on September 24, 2026, and the company received it on October 3.

The dispute involves an earlier appellate decision that dropped a Rs 89.32 crore demand along with applicable interest and penalties, while separately sending a Rs 6.24 crore demand for fresh adjudication. The Principal Commissioner of CGST Commissionerate, Ludhiana, challenged that decision through a civil writ petition.

Nectar Lifesciences said its final liability is presently not ascertainable. It disclosed potential exposure to the Rs 89.32 crore demand, together with interest and penalties, and the Rs 6.24 crore demand if the Appellate Authority reconsiders the matter.

What the earlier appellate order decided

The Commissioner (Appeal), through an order dated May 27, 2025, had decided several components of the tax dispute:

  • Confirmed ineligible input tax credit of Rs 17.06 lakh, comprising CGST and SGST of Rs 8.53 lakh each, and imposed an equivalent penalty.
  • Dropped the balance demand of Rs 89.32 crore, including applicable interest and penalties on that issue.
  • Remanded the Rs 6.24 crore demand to the proper officer for de novo adjudication under GST law, with adjustment of taxes and interest already paid.
  • Quashed personal penalties of Rs 25,000 each imposed on Chairman and Managing Director Sanjiv Goyal and former employees R. K. Aggarwal and Sandeep Goel.

Tax authority's challenge and further recourse

The CGST authority sought to set aside the appellate order, restore the original order that it had quashed, and obtain an interim stay on the appellate decision. The High Court subsequently directed fresh consideration by the Appellate Authority.

Nectar Lifesciences had previously disclosed the regulatory development through a letter dated March 24, 2026. Its latest filing reports the court's remand and identifies the demands as potential exposure, with the final quantum remaining unascertained.

The company said it reserves the right to appeal before the Tribunal, if required. The disclosure was submitted to BSE and NSE under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.