Chennai-based TVS Electronics Ltd on Thursday (December 7) said the company has received ₹35.58-crore notice from Chennai customs.
"The company has received an order from the office of the Commissioner of Customs (Audit), Chennai, dated 6th December 2023 to pay ₹35.58 crore (including differential duty of ₹10.02 crore and fines/penalties on the company, its Customs House Agent, company secretary, and other official)," TVS Electronics said in a regulatory filing.
This financial blow is a consequence of a disagreement with the Customs Department regarding the classification of thermal line printers imported by the company from a neighbouring country under the duty-free category.
At the heart of the matter is a divergence in opinions between TVS Electronics and the Customs Department regarding the appropriate classification of the imported goods for the determination of customs duty.
The company has carefully responded to a show cause notice, presenting a detailed reply to the customs authorities. In a bid to navigate this legal labyrinth, TVS Electronics has engaged the services of a legal attorney, who will represent the company in the ensuing proceedings.
Further, TVS Electronics is gearing up for a legal battle and has initiated the process of filing an appeal before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in Chennai.
Shares of TVS Electronics Ltd ended at ₹352.95, up by ₹5.25, or 1.51%, on the BSE.
