Rashi Peripherals has been issued a Rs 2.15 crore demand by the Mumbai Customs Commissioner regarding the classification of imported goods. While the company plans to appeal the order at CESTAT, it is currently evaluating a penalty reduction offer if dues are settled within 30 days. The amount has been classified as a contingent liability.
Rashi Peripherals Faces Rs 2.15 Crore Customs Demand Order
Total demand confirmed: Rs 2.15 crore. Differential duty demand dropped: Rs 87.42 lakh.
Reader Takeaway: Company to challenge customs demand at CESTAT, while evaluating a potential penalty reduction of 75%.
What just happened
The Office of the Principal Commissioner of Customs, Mumbai, has issued an order dated November 3, 2026, against Rashi Peripherals Ltd. The order follows a show cause notice regarding the classification of imported goods. While the authority partially dropped a portion of the differential duty demand, it confirmed a total liability of Rs 2.15 crore (Rs 2,15,02,570), which includes Rs 1.07 crore in differential duty and an equivalent amount in penalties.
Why this matters
This regulatory demand impacts the company's immediate cash position if they choose to pay to avoid further interest or litigation costs. The confirmation of the demand, even if contested, necessitates the booking of a contingent liability on the company's books. Investors should track whether the firm opts for the 30-day settlement window, which allows for a 75% reduction in the penalty component.
What changes now
Rashi Peripherals is currently in active discussions with legal advisors to prepare an appeal to be filed before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The company has stated it does not accept the order as final and will pursue appellate remedies.
Risks to watch
The primary risk remains the potential outflow of Rs 2.15 crore if the appeal process is delayed or fails. Furthermore, any adverse outcome at the appellate level could lead to additional interest charges or extended legal costs. Investors should monitor the company's regulatory filings for updates on the filing of the CESTAT appeal.