JSW Steel Ltd has received a demand notice from the Chennai Customs Office over an alleged improper classification under the Customs Act, 1962. The customs authorities have demanded ₹18,01,554 in taxes, along with interest, a penalty of ₹4,50,388, and a redemption fine of ₹5,00,000.
The company has agreed to pay the demanded tax amount of ₹18,01,554 after accepting the change in classification that led to the difference in duty. However, JSW Steel plans to appeal against the penalty and redemption fine. The company stated that there was no intention to evade payment of applicable duties and that the issue arose due to a difference in interpretation of the classification.
In an exchange filing, JSW Steel mentioned, “As far as the demand of redemption fine and penalty is concerned, the same is proposed to be challenged in appeal as there was no intention to avoid payment of applicable duties.”
Key Points:
- Notice Received: From the Office of the Principal Commissioner of Customs, Chennai.
- Allegation: Improper classification under Section 28(8) read with Section 28(4) of the Customs Act.
- Total Demand: ₹18,01,554 in taxes, ₹4,50,388 penalty, and ₹5,00,000 redemption fine.
- Company’s Stance: Accepts the tax demand but will appeal the penalty and fine.
- Reason for Appeal: Claims the issue is due to a classification interpretation and no intent to avoid duty payments.
Conclusion:
JSW Steel is addressing the tax demand by agreeing to pay the required amount but is set to challenge the additional penalty and fine imposed. The company emphasizes that the dispute is over the interpretation of customs classification and asserts that there was no deliberate attempt to evade taxes.
