India Glycols Limited provided an update regarding a prior customs dispute, referencing an order passed by the Appellate Authority on February 27, 2026. The Appellate Authority partially upheld an earlier demand concerning short-paid duty (₹33.43 crore plus interest) but set aside the penalty of ₹41 crore and the redemption fine of ₹191.76 crore. The company believes it has a strong case and plans to file a second appeal, anticipating no immediate material impact on its operations.
Update on Customs Authority Proceedings
India Glycols Limited has issued a formal disclosure concerning the proceedings initiated by the Customs Authority. This communication follows up on an earlier notice dated April 9, 2024, which related to an order passed on March 22, 2024, referred to as the ‘Impugned Order.’
Appellate Authority Decision
The company has now received the order dated February 27, 2026, from the Commissioner (Appeals), Noida, Uttar Pradesh (the ‘Appellate Authority’), which was received on March 12, 2026. The Appellate Authority has partially upheld the original ‘Impugned Order.’
Details of Financial Implications
The initial ‘Impugned Order’ demanded a total amount comprising:
- Short paid duty of Rs. 33.43 crore, plus applicable interest.
- A penalty of Rs. 82 crore.
- A redemption fine of Rs. 191.76 crore under the Customs Act, 1962.
The subsequent order from the Appellate Authority has resulted in a significant reduction of the total demand. Specifically, the Appellate Authority upheld the demand for Rs. 33.43 crore (duty short paid along with interest) and a penalty of Rs. 41 crores. Crucially, the demand for the penalty amount of Rs. 41 crore and the entire redemption fine of Rs. 191.76 crore have been set aside.
Anticipated Impact and Next Steps
Based on the company’s internal assessment and legal counsel’s advice, India Glycols has determined it maintains a strong case on merit regarding the confirmed demands. Consequently, the company will file a second appeal against the aspects confirmed by the Appellate Authority. Management does not reasonably anticipate any material impact on the entity’s financial or operational activities stemming from this ongoing matter.
Source: BSE
