The shares of Gujarat Fluorochemicals Limited (GFL) were trading at ₹4,705.05, up by ₹29.90 or 0.64 per cent, on the NSE today at 10.15 am, a day after the company announced that it has received a customs duty demand of ₹304.7 crore plus penalties from the Mumbai Customs Commissioner’s office.
The order, received on October 15, includes an additional fine of ₹19.5 crore under the Customs Act, 1962.
The dispute centers on GFL’s use of IGST exemptions on raw materials imported against Advance Licenses between October 13, 2017, and January 9, 2019. Customs authorities contend that the company failed to meet pre-import conditions specified under notification 79/2017 of the Customs Tariff Act.
GFL maintains that the order will have no material impact on its operations, citing an April 28, 2023, Supreme Court judgment that allows companies to claim Input Tax Credit for such duty payments. The company plans to appeal the order.
The chemicals manufacturer has stated that the demand for penalties and fines is “not sustainable” based on their assessment. The total demand includes the primary duty amount of ₹30.46 crore, an equivalent penalty, and the additional fine.
