Home / Business and Economy / MRPL Secures Major Customs Duty Win: ₹212 Crore Refund
MRPL Secures Major Customs Duty Win: ₹212 Crore Refund
14 May
Summary
- MRPL wins a ₹212.53 crore customs duty refund.
- The dispute involved the classification of 'Reformate' imports.
- CESTAT ruled in favor of MRPL, ordering the refund.
The Customs Excise and Service Tax Appellate Tribunal (CESTAT) has ruled in favor of Mangalore Refinery and Petrochemicals Ltd (MRPL), ordering a refund of ₹212.53 crore in customs duty. This amount was paid by MRPL under protest during a dispute over the classification of 'Reformate' imported between October 2015 and February 2017.
The core of the dispute centered on the correct customs tariff heading (CTH) for the imported goods. MRPL classified 'Reformate' under CTH 27075000, while the Customs Department insisted on CTH 27101219. This disagreement led to a demand for differential Basic Customs Duty, interest, penalties, and a redemption fine totaling ₹616.82 crore.
MRPL had deposited ₹212.53 crore under protest during the investigation, which the department appropriated. Following CESTAT's decision, MRPL is now eligible to reclaim this deposited amount. The company is expected to file a refund application within the statutory timeline, which will positively impact its cash flow and clear the contingent liability.
