The Customs Excise and Service Tax Appellate Tribunal (CESTAT) has ruled in favour of , making the company eligible for a refund of Customs Duty amounting to ₹212.53 crore paid under protest.
The company informed the stock exchanges on Thursday that the case pertains to the dispute related to the classification of ‘Reformate’ imported by MRPL from October 2015 to February 2017. The company had classified the imported goods under CTH (customs tariff heading) 27075000, whereas as per Customs Department, the correct classification was CTH 27101219.
Accordingly, the company was directed payment of differential Basic Customs Duty amounting to ₹212.11 crore, along with applicable interest of ₹46.30 crore, penalty of ₹258.41 crore and redemption fine of ₹100 crore, aggregating to a total demand of ₹616.82 crore.
The company said that the Department had appropriated an amount of ₹212.53 crore deposited by MRPL under protest during the course of investigation against the aforesaid differential duty and other levies.
The company filed an appeal before the CESTAT, Bengaluru, against the order of the department. MRPL said that CESTAT allowed MRPL’s appeal with consequential relief, if any, as per law.
On the expected financial implications of the order, the company said: “MRPL is eligible for refund of the Customs Duty amounting to ₹212.53 crore, paid under protest, which will improve the Company’s cash flow position and extinguish the contingent liability aggregating to ₹616.82 crore.”
The company shall file a refund application under the provisions of the Customs Act, 1962, within the prescribed statutory timeline, it said.