Nestle India Ltd on Wednesday reported that it has been levied a tax fine of ₹69 lakh. The company in an exchange filing informed that the order was made under Section 28 (4) read with Section 28AA of the Customs Act, 1962.
The firm had previously challenged the order issued by the Deputy Commissioner of Customs. But the Appellate Authority ordered in favor of the revenue department, upholding the customs duty demand of ₹69,45,387, along with interest and an equal penalty, as per the filing.
Nestle India had promised that the judgment would have no significant effect on its business operations, finances, or business activity. The firm also made known its plan to seek legal avenues to contest the ruling.
On Wednesday, the stock of Nestle India closed the trading session at ₹2,240.10 per equity share on the BSE.
SEBI Issues Warning Over Insider Trading Regulations
Earlier this month, the Securities and Exchange Board of India (SEBI) sent a cautionary letter to Nestle India over an alleged violation of insider trading rules by a senior executive.
According to a regulatory disclosure, SEBI issued an "administrative warning letter" to the company, though the person involved was not identified.
"The company's Compliance Officer has been issued an administrative warning letter by the Deputy General Manager of SEBI for non-compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015 ('PIT Regulations') by a Company's designated person," the filing added.
A spokesperson for Nestle India later explained to PTI that this issue would not impact the company's operations significantly.
In light of Price Adjustments in the Face of Increasing Costs
In another development, Nestle India is said to be considering a modest price hike on some products to offset the effect of rising costs for major ingredients like coffee, cocoa, and edible oil.
Nestle India Managing Director Suresh Narayanan stressed that the company will try to keep price rises "as low as possible" while ensuring consistent sales, according to an interview with Reuters last month.
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