Customs order: goods reclassified, differential duty, fine and penalties imposed; appeal planned
Customs Commissioner (JNCH, Nhava Sheva) order dated Sept 24, 2026 reclassified imported goods, confiscated seized goods worth Rs. 2,30,34,882/- (redemption fine Rs. 25,00,000/-).
- Confiscated Goods Value
- Rs. 2,30,34,882/-
- Redemption Fine
- Rs. 25,00,000/-
- Differential Duty (First Part)
- Rs. 11,10,373/-
- Differential Duty (Second Part)
- Rs. 1,42,87,031/-
- Penalty on Company
- Rs. 1,53,97,404/-
What happened
Aarti Surfactants and its CEO & Managing Director Mr. Nikhil Desai received an order dated September 24, 2026 from the Commissioner of Customs (NS-I), JNCH, Nhava Sheva. The authority rejected the declared description of imported goods as "Dimethyl Lauryl Amine (DMLA)" and re-classified them as a Cationic Surface Active Agent under a different customs tariff heading.
What the order directs
- Confiscation of seized goods of 171.444 MTs valued at Rs. 2,30,34,882/-, with redemption allowed on a fine of Rs. 25,00,000/-.
- Differential duty of Rs. 11,10,373/- with applicable interest.
- Goods of 2,275.963 MTs valued at Rs. 34,88,31,865/- held liable for confiscation, with no redemption fine as the goods are not available.
- Further differential duty of Rs. 1,42,87,031/- with applicable interest.
- Appropriation of Rs. 2,25,31,731/- already paid by the company towards the above duty and interest.
- Penalty of Rs. 1,53,97,404/- on the company, with applicable interest.
- Enforcement and encashment of a bond of Rs. 2,76,35,214/- and bank guarantees of Rs. 35,00,000/- issued by Axis Bank.
- Penalty of Rs. 10,00,000/- on Mr. Nikhil Desai under Section 112(a) and a further Rs. 10,00,000/- under Section 114AA.
Company's stance
The alleged contravention is classification of imported goods under an incorrect Customs Tariff Item. The company states the aggregate financial impact of duty, redemption fine and penalty is not expected to have any material impact on its operations at this stage. It is evaluating the order and intends to file an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).
How to read it
Part of the demand has already been paid and appropriated. The outstanding exposure largely relates to the penalty, redemption fine and interest, subject to the appeal outcome. The company said it will update the exchanges on material developments.
Also from Aarti Surfactants
Members approve alteration of Main Object Clause of the Memorandum of Association
1 Oct 2026
Shareholders approve re-appointment of CEO & MD and Executive Director, and appointment of an Independent Director
1 Oct 2026
More numbers
- Seized goods confiscated - valueRs. 2,30,34,882/-
- Seized goods weight171.444 MTs
- Redemption fineRs. 25,00,000/-
- Differential duty (first demand)Rs. 11,10,373/-
- Goods held liable for confiscation - weight2,275.963 MTs
- Goods held liable for confiscation - valueRs. 34,88,31,865/-
- Differential duty (second demand)Rs. 1,42,87,031/-
- Amount already paid and appropriatedRs. 2,25,31,731/-
- Penalty on the CompanyRs. 1,53,97,404/-
- Bond to be enforcedRs. 2,76,35,214/-
- Bank guaranteesRs. 35,00,000/-
- Penalty on CEO & MD (each of two)Rs. 10,00,000/-
Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.