Manorama Industries Limited has disclosed a voluntary payment of ₹20,64,17,893 towards differential customs duty, IGST, interest, and penalty. This action was taken following an inquiry by Customs authorities regarding the eligibility of imported raw material under the India-UAE CEPA. The company has since issued a debit note and legal notice to the overseas supplier seeking reimbursement of this amount.
Customs Inquiry and Duty Payment
Manorama Industries Limited has made a voluntary payment of ₹20,64,17,893 on July 29, 2026. This aggregate amount covers differential customs duty, IGST, interest, and applicable penalties. The payment was made proactively, without awaiting a formal demand or adjudication order from the Customs Department.
The payment stems from an inquiry initiated by the Special Intelligence & Investigation Branch, Customs, Indore. The inquiry concerns the eligibility of imported Palm Mid Fraction, used as raw material, for preferential tariff treatment under the India-UAE Comprehensive Economic Partnership Agreement (CEPA). This eligibility was based on Certificates of Origin provided by the supplier in the UAE.
Dispute with Overseas Supplier
The company has taken the position that the supplier’s representations regarding the Certificate of Origin did not accurately reflect the goods’ eligibility for CEPA benefits. Consequently, Manorama Industries has issued a debit note and served a legal notice on the supplier on August 10, 2026. The company is seeking reimbursement of the aforementioned amount or an alternative adjustment.
Manorama Industries has reserved its rights to pursue further legal remedies, including arbitration, if the amount is not reimbursed by the supplier. The company stated that, apart from the deposited amount and incidental costs, it does not anticipate any material adverse impact on its financial position or operations from this matter.
Source: BSE
