ZF Commercial Vehicle Control Systems India Ltd. (formerly WABCO India) has disclosed that it received an official order from the Principal Commissioner of Customs (Air Cargo), Chennai, raising a demand of ₹21.06 crore, along with applicable interest and an equal amount as penalty. The matter pertains to the alleged incorrect classification of imported parts used in anti-lock braking and air braking systems.
The order, dated July 31 and received on the same day via email, falls under Section 28(8) read with Section 124 of the Customs Act, 1962. The customs department claims the company underpaid import duty due to the misclassification of specific components.
ZF, however, maintains that its classification methodology is appropriate and intends to challenge the order. The company stated the development will not have any material impact on its financials, operations, or business activities.
This update was shared with the exchanges in compliance with SEBI’s disclosure norms.
