V-Guard Industries has received an Order-in-Original from the Commissioner of Customs (NS-V), JNCH, concerning a dispute over the classification of certain product components. The authority has raised a demand for differential duty and imposed penalties related to imports spanning from September 2019 to June 2024. The company is currently evaluating the order and intends to pursue an appeal before the CESTAT to contest the findings.
Details of the Customs Order
The Order-in-Original issued by the Commissioner of Customs pertains to the classification of specific parts used in V-Guard’s product manufacturing. The customs authority has re-classified these goods, resulting in a confirmed differential duty demand of INR 1,62,59,112, along with applicable interest charges under the relevant sections of the Customs Act.
Financial Implications and Penalties
In addition to the differential duty, the authority has levied substantial penalties. These include a penalty equivalent to the duty amount of INR 1,62,59,112 (with an option for the company to reduce this to 25% of the penalty amount, subject to specific conditions) and an additional penalty of INR 50,00,000 under Section 114AA.
Company Response and Next Steps
The import transactions covered under this order occurred between September 9, 2019, and June 11, 2024. V-Guard Industries has formally acknowledged the communication received on April 6, 2026. The company’s management is currently conducting a thorough evaluation of the legal and commercial merits of the order and plans to file an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) within the prescribed statutory timelines.
Source: BSE
