Steel Strips Wheels Ltd Receives Show Cause Notice from Customs Over Duty Drawback and RoDTEP Scrips
Steel Strips Wheels Ltd has received a Show Cause Notice (SCN) from the Office of the Principal Commissioner of Customs regarding alleged violations concerning the utilization of Duty Drawback and RoDTEP scrips used for goods exported. The SCN was received by the company on June 16, 2026, and grants the company thirty days to respond to the Authority.The customs department alleges that Steel Strips Wheels Ltd violated provisions of Section 65 of the Customs Act, 1962. These allegations relate to the improper availing of Duty Drawback and RoDTEP scrips amounting to Rs. 1,37,80,184 and Rs. 32,38,451 respectively.
The period for which the communication is applicable spans from November 9, 2023, to July 8, 2025.
Financial and Operational Details of the Dispute
The SCN alleges violations under Section 65 of the Customs Act, 1962. The company notes that it has taken preparatory action regarding the matters raised by the customs department.Details concerning the alleged non-compliance and financial status are summarized below:
| Aspect | Detail |
|---|---|
| Alleged Violation | Provisions of Section 65 of the Customs Act, 1962 |
| Associated Amounts | Duty Drawback scrips valued at Rs. 1,37,80,184 and RoDTEP scrips valued at Rs. 32,38,451 |
| Unutilized Scrip Amount | An amount of Rs. 13,13,752/- in RoDTEP scrips has not been utilized by the company till date. |
| Penalty Alleged | The penalty is allegedly under Section 113, Section 114(iii), 114AA and 117 of the Customs Act, 1962 (The amount of penalty has not been quantified). |
Company’s Action and Financial Stance
Regarding the financial implications, the company stated that it has already paid the duty drawback amount of Rs. 1,37,80,184 and RoDTEP equivalent of Rs. 32,38,451 along with applicable interest prior to the issuance of the SCN, in an effort to mitigate litigation risks.The company currently does not anticipate any financial liability as a result of these payments. However, the management noted that exact financial implications cannot be determined until the entire proceedings are completed.
In response to the SCN, Steel Strips Wheels Ltd is evaluating the allegations and will submit its necessary reply to the Authority within the prescribed timeline.
SSWL Stock Price Movement
Trading is cautious for Steel Strips Wheels Limited as of 12:13 PM, with shares shedding 1.48% and currently trading at ₹230.57. The stock has seen intraday movement between a low of ₹229.12 and a high of ₹234.44, against a volume of 224,321 shares traded so far.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.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.