Jyothy Labs has been issued an Excise Duty Order demanding approximately ₹11.65 crore, including interest, fine, and penalty. This demand, received on August 24, 2026, stems from a difference in interpreting HSN classification for manufactured products. The company previously secured favorable rulings on similar disputes and does not foresee a material impact on its financials, as it plans to appeal the order.
Excise Duty Order Received
Jyothy Labs Limited announced on August 25, 2026, that it received an Excise Duty Order on August 24, 2026. The order was issued by the Commissionerate of Central Goods and Services Tax and pertains to the period from April 2016 to June 2017. The total demand, including applicable interest, fine, and penalty, amounts to approximately ₹11.65 crore (₹9.69 crore for Excise Duty, ₹0.97 crore for Penalty, and ₹9.69 crore for Redemption Fine, plus applicable interest).
Dispute Basis and Company’s Stance
The demand has primarily arisen due to a difference in the interpretation of the HSN (Harmonized System of Nomenclature) classification of the manufactured product, leading to a consequential excise duty liability. Jyothy Labs highlighted that it had previously received favorable orders at another location regarding similar classification disputes, which were accepted by the Excise Authorities and not challenged further.
Appeal and Impact Assessment
The company is currently in the process of filing an appeal before the appellate authority to contest this order. Despite the significant sum, Jyothy Labs stated that it does not foresee any material impact on its financials, operations, or other activities as a consequence of this particular order.
Source: BSE
