Harish Textile Engineers faces mediation in commercial dispute

Harish Textile Engineers has received a notice for pre-institution mediation from the Mediation Centre, CBD Belapur, Navi Mumbai, regarding a commercial dispute filed by Vashi Integrated Solutions Limited. The notice directs the company, along with its Directors and Chief Financial Officer, to appear for mediation proceedings on August 1, 2026. The company stated that the matter does not currently have a material financial or operational impact.

The notice was issued under the provisions of the Commercial Courts Act, 2015, which governs pre-institution mediation. Vashi Integrated Solutions Limited initiated the commercial dispute against the company. The mediation proceedings are scheduled to commence at 11:00 A.M. on the specified date.

The company received the communication on July 21, 2026, via post. The disclosure was made to the stock exchange in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details of the Mediation Notice

The following table outlines the key particulars of the regulatory disclosure:

Sr. No.	Particulars	Details
1	Name of Authority	Mediation Centre, CBD Belapur, Navi Mumbai
2	Nature of action	Notice directing appearance for Pre-Institution Mediation in a commercial dispute filed by Vashi Integrated Solutions Limited
3	Date of receipt	July 21, 2026
4	Legal framework	Commercial Courts Act, 2015
5	Impact	No material financial or operational impact at present

Sandeep Gandhi, Managing Director of Harish Textile Engineers, signed the disclosure submitted to the exchange.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.31%	+4.17%	+6.07%	+12.03%	+16.94%	+38.32%

Harish Textile Engineers has received a notice from the Goods and Services Tax Department alleging an excess availment of Input Tax Credit (ITC) amounting to Rs 1.93 lakh for the financial year 2022-23. The notice in Form DRC-01A was issued on July 16, 2026, by the Office of the Assistant Commissioner of State Tax, Unit 74, Vapi, Gujarat. The company has been directed to furnish its explanation along with supporting documents within the prescribed timeline.

The authority proposes to levy interest of Rs 1.31,959 under Section 50 of the Central Goods and Services Tax Act, 2017, and a penalty of Rs 29,001 under Section 74 of the Act. The notice specifically flags the alleged excess availment of ITC as the reason for the proposed demand.

Response and Current Status

Harish Textile Engineers is currently examining the observations detailed in the notice. The management stated that it is taking appropriate steps to prepare and submit a detailed reply along with the necessary supporting documents within the prescribed timeline. The company emphasized that the notice is a scrutiny measure seeking clarification and that no demand, penalty, or adverse order has been passed against it at this stage.

Disclosure Details

The following table outlines the key details of the regulatory disclosure:

Sr. No.	Particulars	Details
1	Name of Authority	Goods and Services Tax Department
2	Designation of the assessing officer	Assistant Commissioner of State Tax
3	Unit	Unit 74, Vapi, Gujarat
4	Nature of action	Notice in Form DRC-01A issued under Section 73 of the Central Goods and Services Tax Act, 2017, for FY 2022-23.
5	Date of receipt	July 16, 2026
6	Violation/Contravention	Alleged excess availment of Input Tax Credit (ITC) amounting to Rs 1.93 lakh.
7	Financial Impact	No financial impact can be ascertained at present as no tax demand, interest, or penalty has been imposed.
8	Remark	The company is examining the notice and will submit its reply within the prescribed timeline.