Supreme Court Rejects Appeal Against Welspun Corp

The Supreme Court has rejected an appeal by the Commissioner of Customs, Kandla for imposing a penalty on the company and its director for the alleged wrong classification of the material imported through Kandla port. The commissioner of customs at the port had levied a penalty of Rs 8,609.82 million for alleged duty evasion by incorrectly classifying the raw materials as well as Rs 205 million on the directors and other officers of the firm.

“Supreme Court of India has dismissed an appeal filed by the Commissioner of Customs, Kandla against the CESTAT Order dated May 22, 2014 which had set aside the Order of the Commissioner of Customs, Kandla for duty evasion of Rs 8,609.82 million on account of alleged wrong classification of imported raw materials along with penalty of Rs 8,609.82 million on the Company and a penalty of Rs 205 million on the directors and officers of the Company,” said the company in a letter to the National Stock Exchange on December 9, 2014.

It further added that a separate case has been filed in the Bombay High Court by the additional director general of Directorate General of Foreign Trade (DGFT), Mumbai wing. “In the same matter, a separate proceeding by Addl DGFT, Mumbai, wherein the Hon'ble Bombay High Court has already granted interim stay in Company's favour is awaiting final disposal,” stated the company in its filings.

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