ISGEC Heavy Engineering faces ₹2.77 crore customs penalty

isgec heavy engineering has reported the imposition of a penalty and a demand for customs duty by the Office of the Commissioner of Customs (NS-V), Maharashtra. The order, received on May 20, 2026, stems from an alleged HSN classification issue concerning goods exported by the company.

Details of the Order

The regulatory filing outlines the specific financial implications of the order. The customs department has alleged that goods were assessable under HSN 87049012, whereas they were previously assessed under HSN 86012000. This discrepancy led to the issuance of the demand and penalty.

Financial Impact

The company has quantified the immediate monetary impact of the order. The total liability includes the principal demand for duty as well as the penalty amount, with interest applicable to the duty demand.

Particulars	Amount
Penalty Imposed	₹2,76,66,845
Demand of Custom Duty	₹2,76,66,845
Applicable Interest	As applicable

Future Course of Action

In response to the order, Isgec Heavy Engineering Limited has confirmed that it will file an appeal under the Customs Act. The company intends to challenge the demand and penalty through the appellate process.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.45%	+0.49%	+3.00%	+28.03%	-8.29%	+101.06%

ISGEC Heavy Engineering has received a penalty order from the Assistant Commissioner/GSTO, Ward 62, Zone 5, Delhi, dated May 15, 2026, pertaining to alleged excess availment of Input Tax Credit for FY 2022-23. The order was received on May 15, 2026, at 14:15:00 HRS, and the disclosure was made pursuant to Regulation 30 read with Para A of Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details of the Penalty Order

The Assistant Commissioner, State Tax, levied a total demand of Rs.37,74,378 against the company. The financial impact is broken down across three components — tax demand, penalty, and interest — as detailed in the table below:

Parameter:	Details
Issuing Authority:	Assistant Commissioner/GSTO, Ward 62, Zone 5, Delhi
Date of Order Receipt:	May 15, 2026, at 14:15:00 HRS
Nature of Violation:	Alleged excess availment of Input Tax Credit for FY 2022-23
Tax Demand:	Rs.20,70,589/-
Penalty:	Rs.2,20,112/-
Interest:	Rs.14,83,677/-
Total Financial Impact:	Rs.37,74,378/-

Company's Response

Isgec Heavy Engineering has stated that it intends to file an appeal under the Goods and Services Tax Act in response to the order. The company has made this disclosure in compliance with its regulatory obligations under the Listing Regulations. The intimation has also been published on the company's official website at www.Isgec.com .

The disclosure was signed by Kalyan Ghosh, Chief Legal Officer & Compliance Officer (Membership No. A10790), on behalf of Isgec Heavy Engineering Limited, from the company's address at A-4, Sector-24, Noida-201301, Uttar Pradesh.