SRF Limited is facing a demand for customs duty and penalty aggregating to ₹38.49 Crores (approx.). The demand arises from alleged wrong HSN classification for the import of raw materials and process chemicals, which the authorities claim denied SRF the benefits of FTA and exemption notifications. The company is contesting the demand based on legal advice, asserting that it is not legally tenable.
Customs Duty Demand
SRF Limited has received a demand for customs duty and penalty from the Commissioner of Customs, Chennai-II (Imports). The total demand amounts to approximately ₹38.49 Crores.
Basis of the Demand
The demand is based on the allegation that SRF Limited adopted wrong HSN (Harmonized System Nomenclature) classification for the import of raw materials and process chemicals. Authorities allege that this resulted in undue benefits under applicable FTA (Free Trade Agreement) and exemption notifications. They also claim that the Company has wrongfully availed export incentives.
Company’s Response
According to a statement released on January 22, 2026, SRF Limited intends to contest the demand. Based on legal advice, the management believes that the demand is not legally sustainable and intends to contest it through appropriate legal forums.
Financial Impact
The potential financial impact is limited to the extent of the demand for ₹38.49 Crores. The company believes the demand is contestable and will pursue legal recourse.
Source: BSE
