ISGEC: ₹2.77 Cr Penalty & Duty Demand on HSN Classification

ISGEC Heavy Engineering Ltd. has been penalized ₹2,76,66,845 by the Office of the Commissioner of Customs (NS-V), Maharashtra, along with a demand for custom duty of the same amount plus applicable interest. The penalty and duty demand stem from a disagreement over HSN classification, with customs alleging the goods should have been assessed under HSN 87049012 instead of HSN 86012000. ISGEC intends to appeal the order under the Customs Act.