Nestle India gets ₹69 lakh tax penalty, says operations remain unaffected

Nestle India's appeal against the Deputy Commissioner of Customs' order was rejected, as the Appellate Authority upheld the decision, confirming a ₹69.45 lakh penalty

Nestle India Ltd on Wednesday said it has received a tax penalty of ₹69 lakh. In an exchange filing, the company said the order has been passed under Section 28 (4) read with Section 28AA of Customs Act, 1962.

 

The company had appealed against the order issued by the Deputy Commissioner of Customs. However, the Appellate Authority upheld the decision in favour of the revenue, confirming the demand for customs duty of ₹69,45,387, applicable interest, and a penalty of an equal amount, it said in the filing.

 

"There is no material impact on financials, operations or other activities of the company on account of the order mentioned above. The company will explore various options to challenge the above order," Nestle India said in the regulatory filing. 

On Wednesday, Nestle India shares closed at ₹2,240.10 apiece on the BSE.

Nestle India receives warning from Sebi

 

Earlier this month, the Securities and Exchange Board of India (Sebi) issued a cautionary letter to Nestle India over an alleged violation of insider trading regulations by a senior company official.

 

According to a regulatory filing, Nestle India received an "administrative warning letter" from Sebi. The company has not disclosed the identity of the individual involved.  

 

"The Compliance Officer of the company has received an administrative warning letter from the Deputy General Manager of Sebi for violation of Sebi (Prohibition of Insider Trading) Regulations, 2015 ('PIT Regulations') by a designated person of the Company," the filing stated.  

 

A Nestle India spokesperson later clarified that this matter would not have a significant impact on the company's operations, news agency PTI reported.  

 

Nestle India considers price hikes

 

Last month, it was reported that the company is planning a modest price increase on its products to counter rising costs of coffee, cocoa, and edible oil while sustaining sales.

 

The company, which manufactures Nescafe instant coffee, aims to keep price hikes "as low as possible," Nestle India Managing Director Suresh Narayanan told Reuters.