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Delhi High Court Sends Tax Notice Back to Tax Authority for Decision
EPACK Durable Ltd has received a procedural update from the Delhi High Court concerning a tax Show Cause Notice. The court has sent the case back to the Central Board of Indirect Taxes and Customs (CBIC) for the tax authorities to make a decision. EPACK Durable stated that this court order does not rule on the tax demand itself and anticipates no immediate significant financial impact from this development.
Court Orders Tax Authority to Decide on Notice
EPACK Durable Limited announced that the Delhi High Court has issued an order regarding a tax Show Cause Notice (SCN). The court has directed the matter back to the Central Board of Indirect Taxes and Customs (CBIC) for adjudication by the tax authorities. This is a procedural step, meaning the court has not ruled on the merits or validity of the tax demand. EPACK Durable is currently evaluating its next legal steps in response.
What the Ruling Means
This development signifies that the tax dispute is ongoing and will now proceed through the administrative process. While the company has confirmed no immediate financial impact, the underlying tax demand, if confirmed by the CBIC, could represent a future financial risk. The High Court's decision means the tax department will now issue a final ruling on the notice.
Previous Tax Issues
EPACK Durable has faced tax scrutiny in the past. In September 2025, GST authorities alleged the company evaded tax worth approximately ₹5 crore by forging transportation records and claiming incorrect Input Tax Credit (ITC). The company reportedly admitted to the default and deposited a portion of the amount. More recently, in March 2026, EPACK Durable received an Income Tax demand of ₹29.03 Crores for Assessment Year 2023-24, which the company deemed unsustainable and planned to appeal.
What Happens Next With the Notice
The Show Cause Notice will now undergo the adjudication process at the CBIC. Shareholders should monitor the company's communications regarding its legal strategy. The company's financial position remains unaffected in the immediate term. A potential future financial liability exists if the CBIC rules against the company.
Potential Risks
The primary risk is the outcome of the adjudication process by the CBIC. The company is evaluating legal remedies, including potentially challenging the High Court's order at the Supreme Court. Continued tax scrutiny could impact operational focus and add to compliance costs.
Peer Comparison
EPACK Durable is a significant player in the OEM/ODM manufacturing space for consumer durables, particularly room air conditioners. Its competitors, such as Dixon Technologies (India) Ltd, often operate similar OEM/ODM models. Other rivals like Havells India Ltd and V-Guard Industries Ltd typically have a more pronounced focus on their own branded products in the market.
Investor Focus
Investors will be tracking EPACK Durable's decisions on further legal remedies, such as filing a Special Leave Petition (SLP) with the Supreme Court. The timeline and outcome of the CBIC's adjudication process are also key points to watch.