Shares of PI Industries Ltd surged 2% on Thursday, 9 January, despite the company announcing receiving a directive from the Commissioner of Customs (NS-III), JNCH, Nhava Sheva, asking for Rs 82.83 crore.

The demand comprises a differential customs duty of Rs 38.91 crore, interest, and penalties in addition to a redemption penalty of Rs 43.91 crore. A categorization issue with input materials imported under the Customs Tariff between 21 July 2018 and 24 November 2022 is the root of the dispute.

In its regulatory filing, the company said, “The order is related to a classification dispute under the Customs Tariff for input material imported by the company from 21 July 2018 to 24 November 2022. The order is passed levying the liability as under: a) Differential customs duty of Rs 38,91,42,615/- along with interest b) Penalties on account of differential customs duty and redemption fine up to Rs 43,91,42,615.”

The demand won’t significantly affect business operations, finances, or other business-related activities, according to PI Industries. The company disobeys the order and intends to file a lawsuit within the specified time limitations.

At 2:02 pm, the shares of PI Industries were trading 0.86% higher at Rs 3,662 on NSE. 

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