Thermax Faces ₹1.52 Crore Customs Demand Related to 2020 SEZ Fire

Thermax Limited announced on April 2, 2026, that it has received an assessment order from the Principal Commissioner of Customs, Ahmedabad. The order demands ₹1.52 crore, plus applicable interest, for customs duty and Integrated Goods and Services Tax (IGST).

This demand is connected to a significant fire incident that occurred in the Special Economic Zone (SEZ) at Dahej in June 2020. The incident originated from an explosion at a neighboring chemical factory, Yashashvi Rasayan Pvt Ltd. Debris from that blast spread to Thermax's premises, resulting in the deaths of two contractual workers at its effluent treatment plant.

Thermax has confirmed its intention to file an appeal against this customs and IGST demand. While the company plans to challenge the assessment, the order represents a potential contingent liability. If the appeal is unsuccessful, Thermax would be required to pay the full amount along with interest, which could impact its financials.

The company is also dealing with other tax-related matters. Thermax received a ₹3.14 crore GST penalty from Pune CGST authorities on March 30, 2026, for alleged incorrect HSN classification, which the company also plans to appeal.

For a large engineering conglomerate like Thermax, with FY25 revenues around ₹4,628 crore, a ₹1.52 crore demand is considered relatively minor. Major industry peers such as Bharat Heavy Electricals Ltd (BHEL), Siemens India, and Larsen & Toubro (L&T) operate at a scale where such an amount would likely not cause significant financial strain. However, the recurring nature of tax and customs demands warrants attention.

Investors will be tracking the progress and outcome of Thermax's appeal against this customs and IGST demand.