V-Guard Industries Limited has received an Order-in-Original from the Commissioner of Customs (NS-V), JNCH, Nhava Sheva, regarding the misclassification of certain parts of products. The communication, dated May 12, 2026, adjudicates a Show Cause Notice (SCN) alleging that the goods were incorrectly classified, prompting a re-classification by the authority under Section 28(4) of the Customs Act.
Order Details
The order confirms a differential duty demand of INR 68,24,372 along with applicable interest under Section 28AA of the Customs Act. In addition, a penalty of INR 68,24,372 has been imposed under Section 114A, with an option to reduce this penalty to 25% subject to specific conditions. The following table summarises the key financial implications arising from the order:
| Particular: | Amount (INR) |
| Differential Duty Confirmed (Section 28(4)): | 68,24,372 |
| Penalty under Section 114A: | 68,24,372 |
Financial Implications
The financial implications arise from imports covered in the SCN and order, which relate to Bills of Entry spanning the period from May 2020 to July 2024. Both the confirmed duty and the penalty amount of INR 68,24,372 each are payable, along with the associated interest under Section 28AA. The option to reduce the Section 114A penalty to 25% remains available to the company, subject to fulfilment of prescribed conditions.
Company Response
In response to the order, V-Guard Industries stated that it is currently evaluating the merits of the order. The management indicated that the company will undertake appropriate steps, including filing an appeal before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) within the prescribed time limits. The intimation was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
