V-Guard Industries Reports Order from Commissioner of Customs Regarding Product Misclassification

V-Guard Industries Limited reported receiving an order from the Commissioner of Customs (NS-V), JNCH, concerning the alleged misclassification of certain parts of its products.

The communication was received on April 6, 2026, from the Commissioner of Customs (NS-V), JNCH, Nhava Sheva. This order adjudicates a Show Cause Notice (SCN) that alleged the misclassification of certain product parts.

According to the company's statement, the authority re-classified the goods and confirmed a differential duty demand under Section 28(4), along with interest under Section 28AA. Furthermore, the order imposed penalties under Sections 114A and 114AA.

The imports covered by this order relate to a period spanning from September 9, 2019, to June 11, 2024.

The financial implications detailed in the order include several components:

• Differential duty confirmed: INR 1,62,59,112, which includes applicable interest.
• Penalty under Section 114A: INR 1,62,59,112 (with an option to reduce to 25% subject to conditions).
• Penalty under Section 114AA: INR 50,00,000.

The core aberration identified by the authority was the misclassification of certain parts of products. Penalties were imposed under section 114A, equivalent to duty, and section 114AA amounting to INR 50,00,000.

In response to the order, V-Guard Industries Limited stated that the company is currently evaluating the merits of the order and plans to take appropriate steps, including filing an appeal before CESTAT within the prescribed time limits.

VGUARD Stock Price Movement​

As of 12:28 PM, shares of V-Guard Industries Limited are slipping by 1.25% in live trading, currently trading at ₹320.00. The equity is shedding value on a notable volume of 62,764 shares as the live market continues its session.

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