New Delhi: The Madras High Court has granted relief to Indian Railway Finance Corporation Ltd (IRFC) by setting aside a GST demand order amounting to Rs 230.55 crore, originally issued by the Assistant Commissioner (ST) on December 4, 2024. The decision follows a writ petition filed by IRFC challenging the impugned demand.
In its judgment, the High Court directed that the matter be remanded back to the concerned tax authority for fresh consideration. IRFC has been instructed to submit its reply and supporting documents within four weeks from the date of receipt of the court’s order. Following the submission, the tax authority is required to issue a clear 14-day notice, fix a date for a personal hearing, and then pass a fresh order on merits and in accordance with the law.
With these directions, the court disposed of the writ petition and closed the connected miscellaneous petition without any costs.
The outcome marks a significant procedural development for IRFC, a key financing arm of Indian Railways and a Government of India enterprise. The company had disclosed the original GST demand in December 2024 and subsequently pursued legal recourse.
There is no ongoing litigation involving IRFC’s key managerial personnel, promoters, or controlling persons, and no settlement terms were involved in the present case.
This information has been shared by the Railways PSU in a regulatory filing to the stock exchanges on April 16.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)