GAIL Faces ₹21.83 Lakh Customs Penalty and Fine Over Denial of Concessional Duty on Imports
GAIL ordered to pay Rs. 21.83 lakh in customs penalty and fine after being denied concessional duty benefits on an import.
GAIL (India) Limited also known as Gas Authority of India, has reported that it has been ordered to pay a penalty and fine totalling 21.83 lakh rupees after customs authorities denied the company the benefit of a concessional duty rate on an imported consignment. The disclosure was made on 13 August 2025. According to the report, the order was issued by the Joint Commissioner...
GAIL (India) Limited also known as Gas Authority of India, has reported that it has been ordered to pay a penalty and fine totalling 21.83 lakh rupees after customs authorities denied the company the benefit of a concessional duty rate on an imported consignment.
The disclosure was made on 13 August 2025. According to the report, the order was issued by the Joint Commissioner of Customs at Nhava Sheva in Mumbai. The customs department passed what is called an Order in Original, which demanded the payment of differential customs duty along with interest, a fine, and a penalty.
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The penalty component amounts to 12.33 lakh rupees and the fine is 9.50 lakh rupees. The order was received by the company on the same day it was issued. The violation cited in the order is the denial of concessional duty benefits. These benefits allow companies to pay a lower customs duty rate under certain conditions.
In this case, the customs department determined that GAIL was not entitled to the concessional rate for the imported goods in question. The department calculated that the company owed additional customs duty and imposed the financial penalties.
GAIL has not disclosed in the announcement whether it intends to appeal the order or pay the amounts immediately. The company has also not specified if there will be any impact on its operations. Such disclosures are required because they are considered material information that may influence investors and stakeholders.
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The concessional duty benefit system is designed to encourage specific types of imports or industries by lowering the cost of bringing certain goods into the country. Denial of these benefits can occur if the authorities believe that the importer has not met the necessary conditions or documentation requirements.
The amount in question is relatively small for a company of GAIL’s size but the case pinpoints the importance of complying fully with customs regulations and ensuring that all claims for reduced duty rates are backed by accurate records.
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