Morepen Labs gets stay on GST refunds show-cause notice from Himachal HC

Morepen Laboratories has obtained a stay on the operation of a show cause notice (SCN) issued by the office of the Commissioner, Central GST & Central Excise Commissionerate, Shimla.

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The SCN, dated December

2, 2025, alleged that the company violated Section 54 of the CGST Act, 2017, along with Rule 89 of the CGST Rules, 2017, by erroneously claiming excess GST refunds amounting to ₹117.94 crore.

In response, Morepen Labs filed a writ petition before the High Court of Himachal Pradesh in Shimla. On January 6, 2026, the high court passed an order granting a stay on the SCN’s operation, which was received by the company on January 8.

According to the company, in light of the stay granted by the high court, there is no immediate impact on its financials, operations, or other business activities.

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Morepen Laboratories Ltd had reported a 3.1% quarter-on-quarter and 6% year-on-year decline in consolidated revenues for Q2FY2025-26, while expenses decreased by 4.3% QoQ and 0.1% YoY.  However, net profit surged 281.8% QoQ and 17.8% YoY, with earnings per share (EPS) at 0.75 for the quarter.

The company's stock price closed at ₹40.32 today, down ₹1.20 or 2.89% from the previous trading session.