State-owned Indian Railway Finance Corporation (IRFC) has secured interim relief from the Madras High Court after the court set aside a Goods and Services Tax (GST) demand of ₹353.18 crore and remanded the matter to tax authorities for fresh consideration.
“The impugned order and recovery notice are set aside, and the matter is remanded for reconsideration. After providing a reasonable opportunity to the petitioner, including a personal hearing, a fresh order shall be issued within three months from the date of receipt of a copy of this order,” the High Court of Judicature at Madras said in an order.
In a regulatory filing on Thursday, the railway financing company said the High Court of Judicature at Madras, through an order dated July 27, 2026, received by the company on July 29, quashed the impugned assessment order and recovery notice issued by the Assistant Commissioner (State Tax), Chennai.
The court directed the tax authority to reconsider the matter after providing IRFC with a reasonable opportunity to present its case, including a personal hearing, and to issue a fresh order within three months from the receipt of the court’s order.
The tax demand pertained to alleged ineligible Input Tax Credit (ITC) amounting to ₹353.18 crore relating to credits reflected in GSTR-2A but not claimed by the company, among other issues. With the High Court’s ruling, the demand has been set aside pending fresh adjudication.
