Manali Petrochemicals Limited: Major Legal Victory in Customs Duty Dispute

Manali Petrochemicals Limited (MPL) has announced a significant legal win following a favorable final order from the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The order, dated March 23, 2026, sets aside a long-standing customs duty demand originally imposed by the Directorate of Revenue Intelligence (DRI), Mumbai, in July 2019.

Case Background and Tribunal Ruling

The dispute centered on the classification of Quicklime imported by the company. The authorities had alleged that the product was misclassified and demanded a customs duty of ₹3.83 crore (plus interest).

The core of the legal argument rested on the chemical purity of the imported goods:

The Authority's Claim: Argued the goods should be classified under CTI 2825 9090, which applies to high-purity chemical compounds.

The Company's Stand: Declared the goods under CTI 2522 1000.

The Verdict: The Tribunal upheld the company's classification, noting that the imported Quicklime had a Calcium Oxide purity between 91%-95%. This falls below the 98% purity threshold required to categorize the product as a specific chemical under the authority's preferred code.

Financial Impact

As the Tribunal has set aside the entire demand, the order is a total victory for Manali Petrochemicals. The company is currently assessing the financial impact of writing back the provisions previously made for this liability. Further updates regarding the exact financial reversal will be shared with the stock exchanges in due course.

Shares of Manali Petrochemicals Limited was last trading in BSE at Rs. 42.91 as compared to the previous close of Rs. 42.15. The total number of shares traded during the day was 20166 in over 351 trades.

The stock hit an intraday high of Rs. 43.10 and intraday low of 40.06. The net turnover during the day was Rs. 841900.00.

Source : Equity Bulls

Keywords

ManaliPetrochemicals INE201A01024 LegalVictory CustomsDutyDispute