Sarla Performance Fibers wins Gujarat High Court case, quashing GST demand

Sarla Performance Fibers Limited announced on November 27, 2025, that it received a favorable Common Oral Judgment from the Hon'ble High Court of Gujarat at Ahmedabad dated November 20, 2025. This judgment pertains to Special Civil Application No. 3081 of 2025 and R/SPECIAL CIVIL APPLICATION NO. 12157 of 2025.

The High Court allowed the company's writ petition and quashed the Order-in-Original No. SURAT/GST/ABS/30/2025-26, dated July 31, 2025. This order was issued by the additional commissioner, Central GST & Central Excise, Surat Commissionerate, and pertained to alleged non-compliance with Rule 96(10) and Rule 89(4B) of the CGST Rules, 2017.

The original dispute involved a demand of approximately INR 41.57 Crores, comprising INR 20.78 Crores in tax and an equivalent penalty of INR 20.78 Crores, along with applicable interest. As a result of the High Court's decision, this entire demand has been quashed, eliminating the contingent liability and having no adverse impact on the company's operations or financial position.