Mangalore Refinery and Petrochemicals Limited (MRPL) has received a favourable ruling from the Customs Excise and Service Tax Appellate Tribunal (CESTAT) in Bangalore, which entitles the company to a refund of ₹212.53 crore in customs duty. This decision comes as a significant financial relief for the company, enhancing its cash flow position.
The tribunal’s final order was issued on 13th May 2026, following an appeal by MRPL against a previous order by the Customs Department. The dispute centred on the classification of imported goods termed ‘Reformats’. MRPL had classified these under CTH 27075000, while the Customs Department insisted on CTH 27/01219, leading to a demand for differential basic customs duty, interest, penalties, and a redemption fine totalling ₹616.82 crore.
During the investigation, MRPL had deposited ₹212.53 crore under protest, which the department had appropriated against the differential duty and other levies. However, with CESTAT’s ruling in MRPL’s favour, the company is now eligible to reclaim this amount. The tribunal’s decision also extinguishes the contingent liability of ₹616.82 crore that had been looming over the company.
MRPL plans to file a refund application under the provisions of the Customs Act, 1962, within the statutory timeline to recover the deposited amount. This development is expected to positively impact MRPL’s financial statements by improving liquidity and removing the contingent liability.
The period applicable for this communication spans from October 2015 to February 2017. There were no aberrations or non-compliances identified by the tribunal in its communication, and no penalties or sanctions were imposed on MRPL as a result of this case.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).