Hexagon Nutrition Subsidiary Receives ₹1.04 Cr Customs Demand
Hexagon Nutrition's former subsidiary received a customs demand of ₹1.04 crore plus interest and penalty. The company disagrees with the demand related to product misclassification and plans to appeal. HNL expects no material operational impact.
While the company disputes the claim and expects a favorable outcome, the demand of over ₹1 crore represents a significant immediate financial liability, warranting a medium impact assessment.
The company has received a demand order from customs for duty, interest, and penalty, which is a negative development.
Hexagon Nutrition Limited (HNL) announced that its previously wholly-owned subsidiary, Hexagon Nutrition Exports Private Limited (HNEPL), received an Order from the Commissioner of Customs – Chennai III on August 29, 2026. The order demands customs duty along with applicable interest and penalty, totaling ₹1,04,71,989. The alleged violation pertains to the misclassification of CTH codes for products, affecting Basic Customs Duty and Social Welfare Surcharge for sales to DTA units.
HNEPL was amalgamated with HNL on January 14, 2026, pursuant to an NCLT order, meaning the demand is now HNL's responsibility. The company strongly disagrees with the findings and, based on legal counsel advice, believes it has a strong case. HNL plans to file an appeal before the relevant appellate authority within the prescribed statutory timelines.
The company stated that while the immediate financial impact is limited to the demand and penalty, it expects a favorable outcome at the appellate level. Therefore, there is no material impact on the operational activities of the company. The disclosure was made on September 1, 2026, after the company completed its internal review and obtained legal advice following the receipt of the order on a Saturday, August 29, 2026.
A plain-language summary of a public exchange filing by Hexagon Nutrition Limited. Read the original for the full detail.