Paradeep Phosphates Limited has received an adjudication order from the Commissioner of Customs, Goa, imposing a total of ₹93.59 crore in fines and penalties. The order relates to the import of Prilled Urea, which was allegedly mis-declared as Technical Grade Urea. The company disputes the findings and plans to pursue legal recourse.
Customs Adjudication Order Issued
Paradeep Phosphates Limited has been subject to an adjudication order by the Office of the Commissioner of Customs, Goa. The order, stemming from a Show Cause Notice dated December 5, 2025, concerns the import of seven consignments of Prilled Urea.
Allegations and Findings
The Adjudicating Authority determined that the imported goods did not qualify as Technical Grade Urea due to a biuret content exceeding the permissible limit of 0.80%. Consequently, the goods were classified under Fertilizer Grade Urea and ordered for confiscation. The authority has imposed a redemption fine of ₹23.26 crore, a penalty of ₹46.52 crore under Section 112(a)(i), and a penalty of ₹23.81 crore under Section 114AA of the Customs Act, 1962.
The proceedings originated from an alleged mis-declaration of imported Prilled Urea as Technical Grade Urea. The company contested the findings, arguing that the test results relied upon by the department were not generated according to prescribed procedures and that no representative samples were drawn by Customs while the goods were under their control.
Financial Impact
The total financial implication from the adjudication order amounts to ₹93.59 crore, comprising the redemption fine and two penalties. The assessable value of the goods covered by the order was ₹465.23 crore. The company stated that this order is not expected to have any material operational impact on its ongoing business operations.
Company Stance
Paradeep Phosphates Limited maintains that it is fully compliant with applicable laws and regulations and has not committed any violation. The company intends to pursue appropriate legal recourse against the said adjudication order.
The date of receipt of this direction or order was August 20, 2026.
Source: BSE
