Key Quantitative Figures

The company has voluntarily paid an aggregate amount of ₹20,64,17,893 (Rupees Twenty Crores Sixty-four Lakhs Seventeen Thousand Eight Hundred Ninety-three only). The detailed breakdown is:

  • Differential Customs Duty: ₹16,95,19,794
  • IGST: ₹84,75,990
  • Interest: ₹1,81,05,807
  • Penalty: ₹1,03,16,302

Dates of Action

  • Summons under Section 108 of the Customs Act, 1962 received: July 24, 2026 (dated July 23, 2026)
  • Voluntary payment deposited: July 29, 2026
  • Customs acknowledgment of payment receipt: August 4, 2026 (via letter)
  • Debit note issued to supplier: August 10, 2026
  • Disclosure date: August 10, 2026

Parties Involved

  • Investigating Authority: Special Intelligence & Investigation Branch (SIB), Customs, Indore, under the Office of the Commissioner of Customs, B-Zone, Nipania, Indore
  • Supplier: Based in the United Arab Emirates (name not disclosed)

Purpose and Rationale

The company regularly imports Palm Mid Fraction, a specialty fat used as raw material for manufacturing cocoa butter equivalents and specialty fats, from a UAE-based supplier. The imports were made under the India-UAE CEPA, claiming preferential tariff benefits based on Certificates of Origin issued by competent UAE authorities and furnished by the supplier.

Financial and Operational Impact

The company states that save and except for the ₹20.64 crore already deposited and costs incidental to the proceedings, it does not anticipate any material adverse impact on its financial position, operations, or other activities as of the disclosure date.

Recovery Actions Initiated

The company has taken the position that the supplier's representations regarding the Certificate of Origin were incorrect, though the company relied on them in good faith. Recovery actions include:

  • Issuance of a debit note to the supplier for ₹20,64,17,893
  • Service of a legal notice demanding reimbursement or adjustment against future supplies
  • Reservation of rights to initiate legal proceedings or arbitration if the amount is not reimbursed

The company has committed to keeping the exchanges informed of any material developments in this matter.