Indian Railway Finance Corporation Limited (IRFC) announced that the High Court of Judicature at Madras has set aside an earlier order and recovery notice concerning a demand of ₹353.18 crore. The matter has been remanded for reconsideration, with a fresh order to be issued within three months after a personal hearing. This decision impacts the Assistant Commissioner’s demand related to ITC available in GSTR 2A.
High Court Overturns Tax Demand
Indian Railway Finance Corporation Limited (IRFC) has received a significant ruling from the High Court of Judicature at Madras. An order passed on 27.07.2026, and received by IRFC on 29.07.2026, has effectively set aside a previous order and a related recovery notice. The court has remanded the matter for reconsideration, stipulating that a fresh order will be issued within three months following a personal hearing for the petitioner.
Impact of the Ruling
The ruling directly addresses a demand of ₹353.18 crore that was raised by the Assistant Commissioner (State Tax), Chennai. This demand was related to Input Tax Credit (ITC) available in GSTR 2A but reportedly not claimed, leading to a lapsed claim. The High Court’s decision to set aside this demand and remit the case for reconsideration marks a positive development for IRFC’s financial standing concerning this specific tax issue.
Legal Proceedings Update
The announcement confirms that the Assistant Commissioner’s demand is set aside, and the matter is now subject to further proceedings as directed by the High Court. While specific terms of settlement are not applicable as the matter is remanded, the outcome of the reconsideration will determine the final financial impact, if any, on the listed entity. IRFC has stated that details of any change in status or development in relation to such proceedings will be provided as required.
Source: BSE
