Uno Minda Limited has received a formal order from the Office of the Commissioner of Customs, Chennai-II (Import), citing alleged misclassification of Harmonized System of Nomenclature (HSN) codes on certain imported goods.
The order, delivered to the company on July 10, 2025, around 10:30 A.M. (IST), includes a total financial demand of Rs. 52.97 lakh, comprising a penalty of Rs. 42.97 lakh and a redemption fine of Rs. 10 lakh.
Breakdown of Customs Demand
According to the details of the order, the company has already paid and accounted for a differential customs duty of ₹42.97 lakh. However, the following liabilities remain outstanding:
| Particulars | Amount (₹) | Status |
| Differential Duty | 42,97,510 | Deposited |
| Interest (as per Section 28AA) | As applicable | Pending |
| Penalty | 42,97,510 | Pending |
| Redemption Fine | 10,00,000 | Pending |
| Total (Penalty + Fine) | 52,97,510 | Pending |
The action arises from alleged violations related to the incorrect classification of HSN codes, which are globally recognized identifiers used to categorize traded products. Such misclassifications may lead to inaccuracies in duty calculation and payment.
Company Response
Uno Minda has indicated that it will contest the order, asserting that its position is supported by merit and regulatory interpretation. The company emphasized that it does not anticipate any material impact on its operations or financial performance from the current development.
“We are evaluating legal remedies and intend to challenge the order before the appropriate authority. We are confident in our stance and do not expect this to affect our business or financial position materially,” the company stated.
Regulatory Context
Disputes over HSN classification are not uncommon in international trade, as they often involve complex product specifications and evolving regulatory guidelines. Customs authorities across jurisdictions routinely audit and scrutinize import declarations to ensure compliance, particularly with HSN codes which influence applicable duty rates.
Under Section 28AA of the Customs Act, 1962, interest may also be levied on delayed payments of duty, though the precise amount in this case remains to be determined.
Market & Investor Outlook
Industry observers note that Uno Minda’s prompt disclosure and assertion of no material impact help to maintain investor confidence. As of now, the matter is expected to proceed through standard appellate channels. The company’s clear stance indicates that while the financial demand is significant in quantum, it is unlikely to disrupt its broader financial or operational activities.
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