Lyka Labs faces GST demand of Rs 73.22 Lakhs

Lyka Labs has received a show cause cum demand notice from the Office of the Principal Commissioner of CGST & Central Excise, Mumbai East, demanding Rs. 73,22,077. The notice, vide Centralised SCN No. CGST/ME/AE/AC/Lyka/2026-27, was issued on June 11, 2026, and received by the company on June 17, 2026. It alleges that the pharmaceutical entity claimed erroneous refunds of Integrated Goods and Services Tax (IGST) on exports made under Advance Authorization, contravening Rule 96(10) of the CGST Rules, 2017.

The department contends that the company availed of ineligible refunds by claiming IGST on exports while simultaneously benefiting from tax exemptions on imports under advance licenses. The total demand includes Rs. 67,92,481 related to exports under advance licenses for FY 2021-22 to FY 2024-25, and Rs. 5,29,596 related to exports made with a 0.1% tax rate for FY 2020-21 to FY 2023-24. The authorities have invoked Section 74 and Section 74A of the CGST Act, 2017, to recover the amount along with interest and potential penalties.

In its response to the exchange, Lyka Labs disputed the demand, arguing that Rule 96(10) was omitted from the CGST Rules effective October 2024 without a saving clause. The company contends that this omission nullifies the basis for the allegations and renders the continuation of proceedings legally untenable. It further cited a Kerala High Court judgment in the case of Sance Laboratories Pvt. Ltd. v. UOI & Ors, which declared the rule ultra vires.

The company disclosed that it is exercising its right to defend the allegations. Management stated that the demand is disputed and that there is no material impact on the financials, operations, or other activities of the company. The notice requires the company to show cause within 30 days of receipt as to why the demand should not be confirmed.

Breakdown of Demand

Category	Period	Amount (Rs.)
IGST on exports under advance licenses	FY 2021-22 to FY 2024-25	67,92,481
IGST on exports with 0.1% tax rate	FY 2020-21 to FY 2023-24	5,29,596
Total Demand		73,22,077

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.83%	-2.35%	+14.59%	-9.48%	-40.98%	+27.49%

Lyka Labs Limited has received a favorable order from the National Company Law Appellate Tribunal (NCLAT), New Delhi, Principal Bench, directing Modi Life Care Industries Limited to pay a claim amount of ₹63,00,000. The order, received on June 04, 2026, requires the payment to be made within 30 days from the date of the order. The ruling was issued in relation to Company Appeal (AT) INS.NO. 726 of 2024 filed by Lyka Labs against Modi Life Care Industries under Section 61 of the Insolvency and Bankruptcy Code 2016.

The disclosure was made to the exchanges pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements) Regulations, 2015. The company stated that the receipt of this amount is the only material impact expected from the order, with no significant effect on its broader financial or operational activities.

Details of the Order

The following table outlines the key particulars of the regulatory disclosure and the tribunal's directive:

Sr. No.	Particulars	Details
1.	Name of the authority	National Company Law Appellate Tribunal, New Delhi, Principal Bench
2.	Nature and details of the action(s) taken, initiated or orders(s) passed	The Company has received the order from the Appellate Tribunal to receive the claim amount of ₹63,00,000 from Modi Life Care Industries Limited within 30 days from the date of the order
3.	Date of receipt of direction or order	04.06.2026
4.	Details of the violation(s)/ contravention(s) committed or alleged to be committed	NA
5.	Impact on the financial, operation or other activities of the listed entity	Company will receive ₹63,00,000 as per Order of NCLT Appellate Tribunal. There is no material impact on financials, operations or other activities of the Company except received amount