Mangalore Refinery and Petrochemicals Limited Receives Final Order from CESTAT, Eligible for Significant Customs Duty Refund
Mangalore Refinery and Petrochemicals Limited (MRPL) has received a final order from the Office of the Customs Excise and Service Tax Appellate Tribunal (CESTAT, Bangalore). This ruling addresses a dispute concerning the classification of "Reformats" imported by the company, which has significant implications for the firm's cash flow and contingent liabilities.The company received the communication from the Customs Excise and Service Tax Appellate Tribunal (CESTAT) on May 13, 2026. The case pertains to a classification dispute where MRPL had initially classified the imported goods under CTH 27075000. The Customs Department, however, insisted on CTH 27/01219, leading to a large demand.
Initially, the department had directed payment of a differential Basic Customs Duty amounting to ₹212.11 crore, along with applicable interest of ₹46.30 crore, a penalty of ₹258.41 crore, and a redemption fine of ₹100 crore. This aggregated to a total demand of ₹1616.82 crore. During the course of investigation, the department had appropriated ₹1212.53 crore deposited by MRPL under protest.
Following MRPL filing an appeal before CESTAT, the Tribunal passed a Final Order that allowed MRPL's appeal with consequential relief, if any, as per law.
The ruling makes MRPL eligible for a refund of the ₹1212.53 crore that was initially paid under protest. Officials noted that this refund is expected to improve the Company's cash flow position and extinguish a contingent liability aggregating to ₹616.82 crore. The company is required to file a refund application under the provisions of the Customs Act, 1962, within the prescribed statutory timeline.
The financial details of the dispute and the expected refund are summarized below:
| Financial Element | Amount (₹ crore) | Details |
|---|---|---|
| Original Demand (Total) | 1616.82 | Includes duty, interest, penalty, and fine. |
| Amount Appropriated under Protest | 1212.53 | Funds deposited by MRPL. |
| Eligible Refund Amount | 1212.53 | Amount paid under protest, subject to refund. |
| Extinguished Contingent Liability | 616.82 | Benefit derived from the refund. |
The period applicable to this communication spans from October 2015 to February 2017. The company plans to proceed by filing the necessary refund application under the provisions of the Customs Act, 1962.
MRPL Stock Price Movement
As of 1:49 PM, shares of Mangalore Refinery and Petrochemicals Limited are slipping by 1.48% in live trading, currently trading at ₹153.32. The stock is seeing high volatility, driven by 3.19 million shares transacted so far in the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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