Filatex India has received a favourable ruling from the Gujarat High Court in a major tax litigation matter concerning Goods and Services Tax (GST) refund claims. The court has set aside two show cause notices issued by the Joint Commissioner of CGST, which together sought recovery of ₹166.79 crore related to refunds claimed under the inverted duty structure.
Case Background
The disputed refund amount pertains to the period from January 2018 to February 2022. The litigation involved two separate notices issued to the company.
| Period Covered | Amount (₹ crore) | Issue Date | Issuing Authority |
| Jan 2018 – Oct 2019 | 74.59 | 14 June 2023 | Joint Commissioner, CGST & Central Excise, Vadodara |
| Nov 2019 – Feb 2022 | 92.20 | 21 September 2023 | Joint Commissioner, CGST |
Filatex India had filed writ petitions before the Gujarat High Court challenging both notices. Interim stays had been granted earlier while the matter was under judicial review.
Court Decision
The court has now quashed both show cause notices, bringing closure to the demand proceedings. The decision removes the potential liability of ₹166.79 crore, which was connected to refund claims made on account of inverted duty structure.
Next Steps
Filatex India confirmed receipt of certified copies of the judgment and noted that the decision concludes the ongoing dispute over the contested GST refunds.
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