Bayer CropScience announced that the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has set aside an order imposing a penalty of ₹10 million. The original penalty was related to alleged misclassification of exported goods. The tribunal’s decision confirms Bayer CropScience’s eligibility to claim export incentives. The demand for recovery of export incentives and additional penalties are now quashed.
Favorable Tribunal Ruling
Bayer CropScience has received a favorable order from the Customs, Excise & Service Tax Appellate Tribunal (CESTAT). The tribunal’s order, dated January 20, 2026, effectively set aside a previous penalty imposed by the Office of Commissioner of Customs, Centralized Adjudication Cell, Maharashtra.
Background of the Case
The initial order, dated December 15, 2023, had levied a penalty of ₹10 million on Bayer CropScience under the Customs Act, 1962. The penalty was related to alleged misclassification of exported goods, specifically concerning the interpretation of the Harmonized System.
Impact of the Order
With the CESTAT order, the demand for recovery of export incentives, which totaled approximately ₹13 million (including interest from FY 2016), along with additional penalties amounting to ₹10 million, has been quashed. The tribunal’s decision is based on confirmation of Bayer CropScience’s eligibility to claim export incentives.
Financial Implications
The favorable ruling has no adverse impact on the company’s financial position. No settlement amount, compensation, or penalty was paid by Bayer CropScience.
Source: BSE
