Classification
Borosil Renewables Limited has received an adjudication order from the Additional Commissioner of Customs (NS-V) at Jawaharlal Nehru Custom House (JNCH), Nhava Sheva, regarding the classification of certain imported plant and machinery for its new solar glass manufacturing project. The order, dated October 15, 2026, was received by the company on October 16, 2026.
The dispute concerns the customs tariff classification of a portion of capital goods imported for the manufacturing project. According to the company’s disclosure, the customs authorities did not accept the classification declared by Borosil Renewables for these goods and alleged that they had been classified under an incorrect Customs Tariff Item. The adjudicating authority subsequently issued an order imposing confiscation and financial penalties under the Customs Act, 1962.
Under the order, the seized goods, valued at Rs. 14,14,43,335, have been ordered to be confiscated under Section 111(m) of the Customs Act, 1962. However, the company has been given the option to redeem the goods by paying a fine of Rs. 30,00,000 under Section 125(1) of the Act.
In addition to the redemption fine, the order imposes two separate penalties on Borosil Renewables. A penalty of Rs. 30,000 has been levied under Section 112(a)(ii) of the Customs Act, while another penalty of Rs. 30,00,000 has been imposed under Section 114AA. These amounts constitute the immediate financial liabilities arising from the adjudication order, excluding the declared value of the goods subject to confiscation.
Borosil Renewables has stated that the combined financial impact of the redemption fine and penalties will not have any material effect on its overall business operations. The company has also clarified its course of action following the customs authority’s decision.
As part of its response, Borosil Renewables intends to pay the applicable redemption fine and penalties under protest. This approach will allow the company to comply with the order while continuing to challenge the customs authority’s decision through the appropriate legal process.
The company plans to file a formal appeal before the Commissioner of Customs (Appeals), contesting the tariff classification adopted by the authorities. The appeal is expected to provide an opportunity for the company to present its position on the classification of the imported capital goods.
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