Customs Show Cause Notice proposing recovery of Rs. 153,57,67,711 received

The company received a Show Cause Notice dated September 22, 2026 from the Commissioner of Customs (NS-V), Nhava Sheva, following a DRI investigation.

Fri 25 Sep 2026

Notice Date

September 22, 2026

Proposed Customs Duty Recovery

Rs. 153,57,67,711/-

Issue

Non-inclusion of royalty payments in assessable value of certain imported goods

Penalty Status

No penalty imposed at this stage

What was shared

The company informed the exchanges that it received a Show Cause Notice dated September 22, 2026, on September 24, 2026, from the Office of Commissioner of Customs (NS-V), Jawaharlal Nehru Customs House, Nhava Sheva, Raigad, Maharashtra.

The allegation

• The notice follows an investigation by the Directorate of Revenue Intelligence (DRI).
• It alleges non-inclusion of royalty payments in the assessable value of certain imported goods, and consequential short-payment of customs duty.
• It proposes recovery of customs duty amounting to Rs. 153,57,67,711/-.

Where things stand

• No penalty has been imposed at this stage.
• The financial impact, if any, will be determined upon adjudication of the notice.
• The company says it is reviewing the matter and will submit its response to the appropriate authority within the prescribed timeline.
• The company states it believes it has appropriately paid customs duties, fully complying with the Customs Act, 1962 read with the relevant Rules.

How to read this

A Show Cause Notice is the start of a tax dispute, not a final demand. The authority asks the company to explain why the stated amount should not be recovered. The company gets to reply, and an adjudication order follows, which can itself be appealed. Investors may view the size of the proposed recovery as material, while noting that the amount is only a proposal at this stage and no liability has been confirmed.

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