TeamLease Services Limited has filed a Writ Petition with the Hon’ble High Court of Karnataka on June 12, 2026. This action challenges an Order-in-Appeal dated January 30, 2026, received from the Commissioner of CGST & Central Excise (Appeals-III), Mumbai. The company asserts that the impugned order suffers from legal infirmities and seeks appropriate interim relief. The penalty upheld is approximately Rs. 32.29 Crores, though no tax demand has been raised yet.
Writ Petition Filed Against Tax Order
TeamLease Services Limited announced on June 12, 2026, that it has filed a Writ Petition before the Hon’ble High Court of Karnataka. This legal action is a direct response to the Order-in-Appeal dated January 30, 2026, which was issued by the Commissioner of CGST & Central Excise (Appeals-III), Mumbai.
This development follows a previous intimation filed on May 06, 2026, concerning the receipt of the said Order-in-Appeal. The company is challenging the decision and has attached relevant details as per SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, as Annexure – A to its filing.
Details of the Impugned Order
The Order-in-Appeal, received on January 30, 2026, from the Commissioner of CGST & Central Excise (Appeals-III), Mumbai, stems from proceedings initiated by the Directorate General of GST Intelligence. The authorities alleged the issuance of invoices for manpower services rendered between July 2017 and July 2022 without underlying supply of services. Consequently, a penalty of approximately Rs. 32.29 Crores has been upheld under Section 122(1)(ii) read with Section 74 of the CGST Act, 2017.
TeamLease maintains that it has duly rendered manpower services, issued valid GST invoices, processed salaries with statutory deductions, and discharged the requisite GST. These transactions were reportedly reflected in statutory returns and financial statements. The company believes the order has significant jurisdictional and legal infirmities, and violates principles of natural justice.
Company’s Stance and Future Actions
The company is seeking appropriate interim relief, including a stay against recovery proceedings, from the Hon’ble High Court of Karnataka. TeamLease emphasizes that while the penalty has been upheld, there is currently no tax demand raised, and no material impact on operations is foreseen at this stage. The matter has been disclosed as a contingent liability in the standalone financial statements for FY25.
TeamLease Services Limited remains committed to taking appropriate legal recourse and ensuring compliance with all applicable laws and regulations. Further material developments will be communicated to the Stock Exchanges in due course.
Source: BSE
