PI Industries receives ₹83 crore demand from Customs Commissioner over classification dispute

Agrochemicals company PI Industries Ltd on Wednesday (January 8) said it has received an order from the Commissioner of Customs (NS-III), JNCH, Nhava Sheva, demanding a total of ₹82.83 crore.

The demand includes a differential customs duty of ₹38.91 crore with interest and penalties, along with redemption fines amounting to ₹43.91 crore. The dispute arises from a classification issue under the Customs Tariff for input materials imported between July 21, 2018, and November 24, 2022.

"The order is related to a classification dispute under the Customs Tariff for input material imported by the company from 21 July 2018 to 24 November 2022. The Order is passed levying the liability as under: a) Differential customs duty of ₹38,91,42,615/- along with interest b) Penalties on account of differential customs duty and redemption fine up to ₹43,91,42,615," PI Industries said in a regulatory filing.

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PI Industries has stated that the demand will not materially affect its financials, operations, or other activities. The company disagrees with the order and intends to seek legal remedies within the prescribed timelines.

"There is no material impact on financial operations or other activities of the company. The company disagrees with the demand raised and intends to initiate appropriate legal remedies against the Order within the prescribed timelines," PI Industries said.

Shares of PI Industries Ltd ended at ₹3,639.60, up by ₹44.95, or 1.25% on the BSE.

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