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:

Harish Textile Engineers has received a notice to vacate one of its licensed factory premises at Umbergaon, Gujarat, following the expiration of its Leave and License Agreement. The company disclosed on July 2, 2026, that it received a communication from the licensor, Harish Enterprise Private Limited, on July 1, 2026, stating the agreement had expired by efflux of time on June 30, 2026. The licensor has called upon the company to hand over vacant and peaceful possession of the premises located at 103, Raikhadi, Umbergaon, District Valsad, within fifteen days of receiving the notice.

The notice further warns that if the company fails to vacate the premises within the stipulated period, the licensor shall be entitled to take appropriate action in accordance with law. The company stated that no violation or contravention has been alleged against it regarding the matter.

Harish Textile Engineers is currently reviewing the contents of the communication in consultation with its legal advisors. The company intends to take appropriate steps as may be considered necessary in accordance with applicable law. At present, the company stated that the financial or operational impact of this development cannot be quantified.

The disclosure was made to BSE Limited under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The communication was addressed by Sandeep Gandhi, Managing Director of Harish Textile Engineers.

The following table details the specifics of the communication received by the company: