Uno Minda Limited has received an order from the Office of the Commissioner of Customs, Chennai-II, Import, concerning the misclassification of HSN (Harmonized System of Nomenclature) on imported goods. The order, which the company received on July 10, 2025, at approximately 10:30 A.M. (IST), demands a penalty of ₹42,97,510 and a redemption fine of ₹10,00,000, totaling ₹52,97,510. Uno Minda has stated its intention to contest the order based on the merits of the case and does not foresee any material impact on its financial or operational activities.
| Customs Order Demands (in ₹) | ||
| Particulars | Amount Demanded | Status |
| Differential Duty | 42,97,510 | Already deposited and appropriated |
| Interest (u/s 28AA of Customs Act, 1962) | As applicable | Pending |
| Penalty | 42,97,510 | Pending |
| Redemption Fine | 10,00,000 | Pending |
| Total New Demands (Penalty + Redemption Fine) | 52,97,510 | Pending |
Action Details
The order from the Office of the Commissioner of Customs, Chennai-II, Import, pertains to alleged violations related to the misclassification of HSN codes on goods imported by Uno Minda Limited. HSN codes are an internationally standardized system of names and numbers for classifying traded products, crucial for customs duties and trade statistics. Misclassification can lead to discrepancies in duty payments, as different HSN codes attract varying rates of customs duty. The specific details of the violation, as outlined in the order, refer to the misclassification of imported goods, which led to the demand for differential duty, interest, penalty, and a redemption fine.
Financial Implications
The customs order has several financial implications for Uno Minda. A differential duty of ₹42,97,510 was demanded, which the company has already deposited and appropriated. In addition to this, the order demands interest as applicable under Section 28AA of the Customs Act, 1962, a penalty of ₹42,97,510, and a redemption fine of ₹10,00,000. The combined amount of the penalty and redemption fine, which are new demands, totals ₹52,97,510. While the differential duty has been settled, the company now faces potential liabilities for the interest, penalty, and redemption fine, subject to the outcome of its contestation.
Company’s Stance and Outlook
Uno Minda Limited has clearly stated its intention to contest the order received from the customs authority. The company plans to challenge the order based on the merits of the case, indicating that it believes the allegations of HSN misclassification are not justified or that the demands are not in line with applicable regulations. Furthermore, the company has explicitly communicated that it does not foresee any material impact on its financial, operational, or other activities as a result of this order. This suggests that, in the company’s assessment, even if the contestation is unsuccessful, the financial implications are not significant enough to materially affect its overall business performance or financial health.
Regulatory Context and Market Perspective
Regulatory actions by customs authorities are a standard part of international trade, and companies often face scrutiny regarding import and export compliance. Misclassification of goods is a common area of dispute, given the complexity of HSN codes and evolving interpretations. Uno Minda’s decision to contest the order is a typical response in such situations, allowing the company to present its arguments and evidence to the relevant authorities or appellate bodies. The company’s assertion that there will be no material impact is a key piece of information for investors and the market, as it aims to mitigate concerns about potential financial liabilities or operational disruptions arising from the customs order. This proactive communication helps in maintaining transparency and managing market expectations regarding the incident.
