Eureka Forbes Receives High Court Relief in ₹16.22 Crore GST Dispute Case
Eureka Forbes Limited received interim relief from Madhya Pradesh High Court in its ₹16.22 crore GST dispute case. The court ordered no coercive action against the company subject to depositing 10% of the tax demand. The dispute involves allegations of excess Input Tax Credit availment and short payment of outward tax for FY 2018-19 to 2022-23. The company expects no material financial impact at this stage.
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Eureka Forbes Limited has secured interim relief from the Madhya Pradesh High Court at Jabalpur in its ongoing GST dispute case involving a tax demand of ₹16.22 crores. The court's order on January 07, 2026, provides protection against coercive action subject to specific conditions.
Court Proceedings and Order Details
The High Court heard Eureka Forbes' writ petition on January 07, 2026, which challenged an assessment order dated October 09, 2025. After hearing arguments from both sides, the court issued a favorable interim order for the company.
| Court Decision Details: | Information |
|---|---|
| Hearing Date: | January 07, 2026 |
| Court: | High Court of Madhya Pradesh at Jabalpur |
| Order Received: | January 08, 2026 at 02:10 PM |
| Condition: | Deposit 10% of tax demand |
| Protection: | No coercive action against company |
The company has confirmed it is in the process of depositing the required 10% amount as directed by the court.
Background of GST Dispute
The dispute stems from an assessment order issued by the Joint Commissioner, CGST & Central Excise Bhopal, which demanded a total tax liability of ₹16,22,32,387 along with penalties. The tax authorities alleged excess availment of Input Tax Credit and short payment of outward tax spanning multiple financial years.
| GST Dispute Parameters: | Details |
|---|---|
| Total Demand: | ₹16,22,32,387 |
| Period Covered: | Financial Years 2018-19 to 2022-23 |
| Allegations: | Excess ITC availment, short outward tax payment |
| Issuing Authority: | Joint Commissioner, CGST & Central Excise Bhopal |
| Assessment Order Date: | October 09, 2025 |
Company's Position and Financial Impact
Eureka Forbes has maintained its position by challenging the assessment order through legal channels. The company filed the writ petition before the High Court to contest the tax demand and associated penalties.
Regarding the financial implications of this legal matter, the company has provided a clear assessment in its regulatory disclosure:
- Expected Financial Impact: The company does not envisage any material impact on financials, operations, or other activities at this stage
- Quantum of Claims: Not applicable
- Current Status: Proceeding with court-directed deposit of 10% tax demand
Regulatory Compliance and Disclosure
The company has fulfilled its disclosure obligations under SEBI regulations by informing both BSE and NSE about this significant legal development. This update follows an earlier communication dated October 16, 2025, when the company first disclosed receiving the GST assessment order.
The disclosure was made in compliance with Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with stakeholders about material legal proceedings affecting the company.
Historical Stock Returns for Eureka Forbes
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.51% | -9.08% | -11.56% | -2.72% | -3.28% | +12.93% |
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