Key Quantitative Figures
- Total confirmed demand: ₹2,15,02,570 (Rupees Two Crores Fifteen Lakhs Two Thousand Five Hundred Seventy only)
- Differential duty demand component: ₹1,07,51,285
- Penalty under Section 114A: ₹1,07,51,285
- Dropped demand amount: ₹87,42,515 (partially dropped)
- Potential reduced penalty: 25% of duty amount if paid within 30 days
Dates and Timeline
- Show Cause Notice date: May 25, 2026 (SCN No. 118/2026-27)
- Order receipt date: November 3, 2026 at 18:40 hours
- Order reference: CAO CC-MC/44/2026-27 Adj (I) ACC
- Payment deadline for reduced penalty: Within 30 days from November 3, 2026
Regulatory Authority
Office of the Principal Commissioner of Customs (Import), Air Cargo Complex, Andheri (East), Mumbai
Nature of Violation
The Show Cause Notice alleged that the company made wrong classification of goods imported, making them liable to pay additional customs duty under Section 28(4) of the Customs Act, 1962 along with penalty and interest.
Financial Impact
- The confirmed demand of approximately ₹2.15 crores (including penalty) along with applicable interest will be classified as a contingent liability in the financial statements of the Company.
- Financial impact is quantifiable at ₹2,15,02,570 plus applicable interest.
Company Response and Next Steps
The Company is in discussion with its legal advisors regarding filing an appeal before CESTAT (Customs, Excise and Service Tax Appellate Tribunal) against the order.