Filatex India Ltd has won a significant legal battle as the Gujarat High Court quashed two GST show cause notices totaling ₹166.79 crore. The notices, related to refund claims under the inverted duty structure between 2018 and 2022, were deemed unsustainable. This ruling provides major relief and strengthens investor confidence.
Filatex India Ltd, a leading polyester yarn manufacturer, announced a major legal win after the Gujarat High Court quashed two show cause notices issued by the Joint Commissioner of CGST. The notices sought recovery of GST refunds worth ₹74.59 crore (Jan 2018–Oct 2019) and ₹92.20 crore (Nov 2019–Feb 2022), alleging erroneous refunds under the inverted duty structure.
The company had filed writ petitions against both notices, and interim stays were earlier granted. With the final ruling, the court has nullified the demands, providing clarity and relief to Filatex’s financial position. Analysts note that this outcome strengthens the company’s compliance standing and reduces litigation risk, which is critical for sustaining investor trust.
Key Highlights / Major Takeaways
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Court Decision: Gujarat High Court quashes GST show cause notices worth ₹166.79 crore.
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Notices Covered: ₹74.59 crore (2018–2019) and ₹92.20 crore (2019–2022).
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Legal Context: Related to GST refunds under inverted duty structure.
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Company Relief: Removes significant litigation overhang, stabilizing financial outlook.
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Investor Impact: Boosts confidence in Filatex’s governance and compliance practices.
Sources: FilingReader; ScanX News