IOL Chemicals receives customs order imposing ₹2.06 crore fine
IOL Chemicals received an order from Customs, Kandla, imposing a total of ₹2.06 crore in differential duty, penalties, and fines. The charges relate to incorrectly availed ASEAN-India FTA exemptions. The company stated the levy will not materially impact its financials and plans to appeal the order.
While the company states the financial impact is not material, the total fine of over ₹2 crore and the ongoing litigation process warrant a medium impact assessment.
The company has been fined a significant amount by the customs authority, which is a negative development.
IOL Chemicals and Pharmaceuticals Limited (IOLCP) has received an Order-In-Original (O-I-O) from the Additional Commissioner of Customs, Kandla.
The order confirms a demand of differential Customs duty amounting to ₹27,97,398, along with applicable interest. Additionally, a penalty of ₹27,97,398 has been imposed under Section 114A of the Customs Act, 1962, and a further penalty of ₹1,00,00,000 under Section 114AA of the Customs Act, 1962. A redemption fine of ₹50,00,000 has also been levied.
These charges aggregate to a total of ₹2,05,94,796. The basis for the order is the alleged incorrect availing of ASEAN-India FTA exemption by using Certificates of Origin that did not conform to the prescribed format, as per Notification No. 46/2011-Customs read with ASEAN-India FTA Rules of Origin.
The company stated that this levy does not have any material impact on its financials, operations, or other activities. IOLCP intends to file an appeal against this order with the appropriate authority.
What to do with a filing like this
IOL Chemicals and Pharmaceuticals Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by IOL Chemicals and Pharmaceuticals Limited. Read the original for the full detail.