NSE/BSE Codes: NSE: SSWL, BSE: 513262

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure pursuant to SEBI LODR Regulation 30 regarding receipt of a Show Cause Notice (SCN) from the Office of the Principal Commissioner of Customs.

Involved Parties / Authorities:

Office of the Principal Commissioner of Customs, Custom House, Mundra Port, Kutch, Gujarat-370421.

Date / Timeline of Event:

  • Date of Receipt of SCN: June 16, 2026
  • Period of Applicability of SCN: November 9, 2023 to July 8, 2025
  • Response Timeline: The company has 30 days from receipt to respond (deadline approximately July 16, 2026)
  • Date of Disclosure to Exchanges: June 17, 2026

Brief Description of Outcome / Dispute:

The Customs Department has alleged that the company violated provisions of Section 65 of the Customs Act, 1962. The specific allegations are:

  • Availing unlawful Duty Drawback scrips amounting to ₹1,37,80,184
  • Availing unlawful RoDTEP (Remission of Duties and Taxes on Exported Products) scrips amounting to ₹32,38,451
  • Additionally, an amount of ₹13,13,752 in RoDTEP scrips has not been utilized by the company to date.

The total value of allegedly unlawful benefits availed is ₹1,70,18,635 (₹1.70 Crore).

Impact of Outcome:

Financial Impact:
  • The company states it has already paid the principal amounts in full before the issuance of the SCN:
  • Duty Drawback amount: ₹1,37,80,184
  • RoDTEP amount: ₹32,38,451
  • The company also paid applicable interest on these amounts
  • The unutilized RoDTEP scrips of ₹13,13,752 remain with the company but have not been used
  • The SCN alleges penalties under Sections 113, 114(iii), 114AA, and 117 of the Customs Act, 1962, but these penalties have not been quantified
  • The company currently states it "does not expect any financial liability" given the pre-payment of principal and interest
  • The exact financial implications cannot be determined until the completion of the proceedings
Operational / Business / Strategic Impact:
  • The company states there "shall be no impact on operational or other activities of the Company"
  • The matter requires management attention and legal resources to prepare and submit a response within the 30-day timeline
Other Implications:
  • Potential reputational impact from being subject to customs compliance scrutiny
  • Regulatory compliance implications regarding future export benefit claims

Next Steps / Required Actions:

  • The company is evaluating the SCN and will submit a necessary reply to the Customs Authority within the prescribed 30-day timeline (by approximately July 16, 2026)
  • The proceedings will continue until a final determination is made by the Customs Authority