Key Event
On October 21, 2026, the company received a communication containing audit observations from the Assistant Commissioner, Office of Commissioner of Customs Audit, Chennai, Tamil Nadu. The communication was issued under Section 99A of the Customs Act, 1962, read with the Customs Audit Regulations 2018.
Details of the Observation
The audit observation pertains to the shipping bills filed by the company. The authority has alleged that the company availed ineligible benefits under the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme on exports made under the DFIA (Duty Free Import Authorization) Scheme.
Financial Demand
As a result, the communication seeks payment from the company of:
- RoDTEP benefits availed: ₹24.52 lakhs
- Interest: To be calculated
- Penalty: To be calculated
- Total specified amount: ₹24.52 lakhs (excluding interest and penalty)
Company's Response and Stance
The company states it will be submitting its response to the communication before the authority within the prescribed timelines.
The company firmly believes that:
1. The demands seem to be untenable, erroneous, and based on a wrong assumption.
2. The benefits under RoDTEP were filed while filing the shipping bills through the customs portal and were therefore availed correctly.
3. The financial implication, if any, that may arise out of this is likely to be very insignificant.
4. It will not have any material impact on the financial position of the company.