Harish Textile Engineers Limited has resolved a Goods and Services Tax (GST) dispute concerning Financial Year 2022-23, eliminating potential regulatory uncertainty for investors. The company settled the matter by paying the assessed tax, interest, and applicable penalties related to an alleged excess availment of Input Tax Credit. This resolution ensures no further material impact on its operations or financial standing.

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. Harish Textile Engineers Limited had previously intimated the exchange on July 17, 2026, regarding the receipt of Form DRC-01A dated July 16, 2026, from the Office of the Assistant Commissioner of State Tax, Unit 74, Vapi.

The core of the dispute involved an alleged excess availment or utilization of Input Tax Credit amounting to ₹1,93,340 for FY 2022-23. The original demand notice included provisions for interest and penalties in addition to the principal tax amount. By settling the full liability as ascertained by the authority, the company has closed this specific compliance gap.

The GST Authority acknowledged the payment through Form GST DRC-04 bearing Reference No. ZD2408260377832, dated August 10, 2026. This acknowledgment serves as the final closure document for the specific DRC-01A intimation. Consequently, there are no further actions pending in respect of this particular order.

Resolution Details

Sandeep Gandhi, Managing Director of Harish Textile Engineers Limited, signed the intimation submitted to BSE Limited on August 11, 2026. The filing confirms that the matter stands settled and resolved, with no outstanding liabilities linked to this specific assessment order.

Harish Textile Engineers Ltd has been directed to appear for pre-institution mediation proceedings scheduled for August 17, 2026, in a dispute with Vashi Integrated Solutions Limited. The District Legal Services Authority, CBD Belapur, Navi Mumbai, has mandated the presence of the company’s directors and Chief Financial Officer for the session, which is set to begin at 12:00 Noon. This development follows the service of Mediation Application No. 52 of 2026 under Section 12A of the Commercial Courts Act, 2015.

The company disclosed the update pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Part A of Schedule III and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. Harish Textile Engineers received the communication from the advocate representing Vashi Integrated Solutions on August 6, 2026, via post. The document confirmed that the authority had received the company’s reply to the summons on August 1, 2026.

Procedural Timeline and Directives

The mediation process involves specific directives from the learned mediator regarding the appearance of key personnel. The company must ensure that its directors and CFO appear either in person or through duly authorized representatives or counsel. The proceedings are part of Pre-Institution Mediation No. 52 of 2026 before the District Legal Services Authority, CBD Belapur.

Impact Assessment

In its disclosure to BSE Limited, Harish Textile Engineers stated that there is no quantifiable financial impact on its operations at this stage. The company is currently examining the contents of the Mediation Application and intends to participate in the proceedings while taking appropriate legal steps in accordance with applicable law. Managing Director Sandeep Gandhi signed the intimation issued from Mumbai on August 6, 2026.