Hexagon Nutrition Faces Rs 1.05 Crore Customs Demand

Total demand is Rs 1,04,71,989 including duty, fine, and penalty.
Management firmly contests the order and is preparing a formal appeal.

Reader Takeaway: Company denies wrongdoing and intends to appeal; operational continuity is expected to remain stable.

What just happened

Hexagon Nutrition Limited has received an order from the Commissioner of Customs, Chennai-III, alleging improper classification of products sold to Domestic Tariff Area (DTA) units during FY 2026-27. This classification error is linked to the company's former subsidiary, Hexagon Nutrition Exports Private Limited, which was merged into the parent entity earlier this year following NCLT approval.

Why this matters

The total demand of Rs 1.05 crore comprises Rs 81.72 lakh in duties, along with a Rs 15 lakh fine and an Rs 8 lakh penalty. While the total amount is relatively small for a firm of its scale, it highlights a regulatory vulnerability concerning past tax filings and the integration of former subsidiaries. Investors should note that the company has already flagged this as a legal contention point for the current fiscal year.

Management Stance and Next Steps

Hexagon Nutrition has publicly disagreed with the Customs department's findings. The company has secured legal advice and is confident in its position, citing a strong case on its merits. The firm is now moving to file an appeal with the relevant appellate authority. Management has explicitly stated that they do not foresee any material disruption to business operations resulting from this regulatory issue.

Risks to watch

Investors should track the outcome of the appeal. While the current financial impact is clearly defined, the risk lies in potential further scrutiny if the classification dispute extends to other product lines or time periods. Continued management guidance on the legal progress will be essential for transparency.