MRPL received major relief after the CESTAT Bengaluru quashed a Rs 616.82 crore customs duty demand and allowed the company to claim a refund of Rs 202.53 crore paid under protest.
Saloni Kumari | May 14, 2026 |
MRPL Secures Major Legal Victory in Rs 616.82 Crore Customs Demand Dispute Before CESTAT
Mangalore Refinery and Petrochemicals Limited has informed the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) that it has received the Final Order by the Office of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore, in Customs Appeal No. 21090 of 2019 and Customs Cross Objections No. 20153 of 2020.
The said order has favoured the company and has originated from an earlier order-in-original no. MLR-CUSTM-000-COM-005-19-20, issued on September 16, 2019, by the Commissioner of Customs, Mangaluru.
The dispute was regarding the classification of “Reformate” imported by the Mangalore Refinery and Petrochemicals Limited. The company had classified the prescribed good under CTH 27075000; however, the customs department claimed that this was an incorrect classification; the correct one is CTH 27101219. Consequently, it directed the company to pay the surplus basic customs duty worth Rs 46.30 crore, along with a penalty amounting to Rs 258.41 crore and a redemption fine of Rs 100 crore, resulting in the total demand imposition of Rs 616.82 crore.
The department had taken and used an amount of Rs 1212.53 crore that was deposited by the company under protest during the probe towards the disputed difference in duty and other charges. As a result, the company filed an appeal before the CESTAT, Bangalore, challenging the aforementioned decision of the tax authorities, and the CESTAT allowed the MRPL’s appeal through its final order no. 20625/2026.
As per the final order, the company is entitled to the custom duty of about Rs 202.53 crore, paid under protest. This will end the aggregate tax liability of Rs 616.82 crore for the company, provided it files a refund application under the Customs Act, 1962, within the legal time limit. The company has unfolded this aforesaid information through an intimation dated May 04, 2026, in pursuance of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.
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