Authority Details

  • Issuing Authority: Office of the Commissioner of Customs, Goa
  • Date of Order Receipt: August 20, 2026
  • Reference: Show Cause Notice No. 02/2025-26 dated December 5, 2025

Order Details and Violations

The adjudication order relates to the import of seven consignments of Prilled Urea. The Authority has determined that:

  • The imported goods did not qualify as Technical Grade Urea as the biuret content exceeded 0.80%
  • The goods correctly fall under Fertilizer Grade Urea classification
  • The goods are ordered to be confiscated under Sections 111(d) and 111(m) of the Customs Act, 1962

Financial Penalties Imposed

  • Redemption fine: ₹23.26 crore under Section 125(1) of Customs Act, 1962
  • Penalty: ₹46.52 crore under Section 112(a)(i) of Customs Act, 1962
  • Additional penalty: ₹23.81 crore under Section 114AA of Customs Act, 1962
  • Total financial impact: ₹93.59 crore
  • Assessable value of goods: ₹465.23 crore

Company's Defense and Position

The Company presented the following arguments in its defense:

  • Independent surveyors at the load port tested the consignments and test certificates generally reported Biuret content within applicable limits for Technical Grade Urea
  • Disputed reliance on post-clearance factory test results, arguing they were generated using an in-house rapid testing method not in accordance with prescribed IS 1781:2022 sampling and testing procedures
  • No representative samples were drawn by Customs while goods were under Customs control
  • No contemporaneous Customs/CRCL test report was available
  • Contended that post-clearance test results could not conclusively establish Biuret content at time of import or justify reclassification

Operational and Financial Impact

The order involves financial implications totaling ₹93.59 crore. However, the Company states that the order "is not expected to have any material operational impact on the ongoing business operations of the Company."

Company Stance and Next Steps

The Company maintains that it "is fully compliant with the applicable laws and regulations and has not committed any violation." The disclosure states that the Company "will pursue appropriate legal recourse against the said adjudication order."