Mukka Proteins Limited , a prominent player in the protein industry, has received a Show Cause Notice (SCN) from the Office of the Commissioner of Customs, Mangaluru, demanding the recovery of export incentives totaling ₹30.37 lakh. This development highlights the ongoing scrutiny of export incentives in India's customs regulatory landscape.

Details of the Show Cause Notice

The SCN, dated October 28, 2025, alleges that Mukka Proteins failed to furnish proof of realization of foreign exchange proceeds against certain exports. The breakdown of the demanded recovery is as follows:

In addition to the principal amount, the notice also demands applicable interest and penalties, which remain unquantified at this time.

Company's Response

Mukka Proteins has acknowledged receipt of the SCN and is taking the following steps:

1. Reviewing the notice in detail
2. Preparing a comprehensive response
3. Planning to file the response within the stipulated time frame

The company has assured stakeholders that, apart from the mentioned amount, there is no other impact on its financials or operations.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Mukka Proteins has duly informed the National Stock Exchange of India Limited and BSE Limited about this development. The company's proactive disclosure aligns with the regulatory requirements for listed entities.

Implications and Outlook

While the immediate financial implication is limited to the demanded amount plus potential interest and penalties, this situation underscores the importance of meticulous documentation and compliance in international trade operations. As Mukka Proteins navigates this regulatory challenge, investors and industry observers will be keenly watching how this issue unfolds and its potential impact on the company's export strategies.

The outcome of this case may also have broader implications for other exporters, highlighting the need for stringent adherence to foreign exchange realization norms and proper documentation of export incentives.

As the situation develops, Mukka Proteins is expected to provide further updates to its stakeholders and the regulatory authorities.

Mukka Proteins Limited, a prominent player in the protein industry, has received a significant reprieve in its ongoing GST dispute with the Office of the Assistant Commissioner of State Tax, Porbandar. The company has seen a substantial reduction in the proposed GST demand from an initial ₹141.06 crore to a mere ₹27.16 lakh.

Background of the GST Dispute

The dispute originated from alleged discrepancies in Mukka Proteins' GST returns for the financial year 2021-22. The company had disclosed the receipt of a GST Notice from the State Tax Officer in Porbandar, Gujarat, proposing a demand of ₹141.06 crore.

Company's Response and Revised Demand

In response to the initial notice, Mukka Proteins filed a detailed reply. The company categorically denied the allegations, asserting that all tax liabilities had been duly discharged and necessary reconciliations submitted. They also mentioned that certain voluntary payments had already been made where applicable.

Following the company's response, the Office of the Assistant Commissioner of State Tax, Porbandar, issued a Show Cause Notice (SCN) in Form DRC-01. This notice significantly revised the proposed demand.

Breakdown of the Revised Demand

The new GST demand of ₹27.16 lakh is composed of:

This revised figure also includes applicable interest and penalties.

Mukka Proteins' Stance and Future Course of Action

Despite the substantial reduction in the proposed demand, Mukka Proteins maintains that the revised figure is also untenable in law and on facts. The company has expressed its intention to contest this demand before the relevant authorities.

In its disclosure, Mukka Proteins stated, "The Company strongly believes that the revised demand is also untenable in law and on facts and will be suitably contested before the authorities. The Company continues to maintain that no material financial liability will arise from these proceedings."

Implications for Investors

This development is likely to be viewed positively by investors and stakeholders of Mukka Proteins Limited. The significant reduction in the proposed GST demand from ₹141.06 crore to ₹27.16 lakh substantially mitigates the potential financial impact on the company.

As the situation continues to evolve, investors will be keenly watching how Mukka Proteins navigates this regulatory challenge and its potential impact on the company's financial position and market performance.