Dabur faces Rs 4.42 cr customs penalty, vows to contest in appellate court

Dabur India faces a Rs 4.42 crore tax demand from Customs for IGST on imports from 2019-2024; the FMCG firm plans to appeal, citing strong merits for a favourable outcome

Dabur India has been issued a tax demand of Rs 4.42 crore by the Commissioner of Customs (Prev.), Patna, the FMCG company said in an exchange filing.

 

The demand comprises:

 

>Tax liability under Section 28(4) of the Customs Act, 1961, amounting to Rs 1.06 crore.

>Applicable interest under Section 28AA.

>Penalty of Rs 2.11 crore under Sections 114A and 114AA.

>Fine of Rs 1.25 crore under Section 125(2).

 

The order, issued by the Commissioner, pertains to IGST on imported goods for the period from June 2019 to April 2024.

 

"The order issued by the learned Commissioner is related to IGST on import of goods for the period from June 2019 to April 2024," the exchange filing stated.

 

The company said it plans to appeal the decision before the appellate tribunal. "The company will challenge the order on strong merits and is likely to get a favourable outcome in higher forums," it said.

 

It further stated, "There is no impact on the financial operations and other activities of the company due to this order. The impact (if any) will be limited to the extent of the final demand towards tax as may be ascertained along with applicable interest and penalty, if any."

 

The company received the order on December 5, 2024, and disclosed the information in compliance with Regulation 30 of Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015, it said.

Dabur to set up first plant in South India

In August this year, Dabur India announced plans to establish a Rs 400-crore manufacturing facility in Tamil Nadu's Villupuram district, marking its first venture in the southern region.

 

State Industries Minister TRB Rajaa said that Dabur has signed a memorandum of understanding (MoU) with the Tamil Nadu government to formalise the project. According to the agreement, the initial phase involves an investment of Rs 135 crore, which will increase to Rs 400 crore within five years, the company stated.

 

Located in SIPCOT Tindivanam, Villupuram district, the new facility aims to strengthen Dabur's presence in South India, which currently contributes approximately 18-20 per cent of its domestic revenue.