Thirumalai Chemicals gets ₹0.25 crore customs audit observation on RoDTEP

Legal
Chemicals - Organic

Blacklitt Research22 October 20262 min read

A coastal industrial complex with chemical plant stacks and towers across a bay, seen from a seawall promenade. — Licjar Xeymelloz, via Wikimedia Commons (CC0). Illustrative image.

Thirumalai Chemicals (NSE: TIRUMALCHM) received a communication of audit observation from the Assistant Commissioner, Office of Commissioner of Customs Audit Chennai, on 21 Oct 2026, it said in a filing on 22 Oct 2026. The authority seeks payment of ₹24.52 lakh of RoDTEP benefits availed on shipping bills, along with interest and penalty.

Key highlights

Amount sought in RoDTEP benefits: ₹24.52 lakh
Interest and penalty: to be calculated
Communication received: 21 Oct 2026
Company response: within prescribed timelines

The audit observation in numbers

Item	Detail
Authority	Assistant Commissioner, Office of Commissioner of Customs Audit Chennai, Tamil Nadu
Legal basis	Section 99A of the Customs Act, 1962 read with Customs Audit Regulations 2018
Alleged violation	Availment of ineligible RoDTEP benefits on exports made under the DFIA (Duty Free Import Authorization) Scheme
Tax sought	Rs. 24.52 lakh
Interest and penalty	To be calculated
Total expected implication	Rs. 24.52 lakh, with interest and penalty to be calculated
Company's position	Demands are erroneous and not sustainable; benefits were auto filled on the customs portal

What the authority has asked for

The communication, received on 21 Oct 2026, seeks payment of RoDTEP benefits availed amounting to ₹24.52 lakh against the company's shipping bills, along with interest and penalty. RoDTEP is a duty remission scheme for exports, and the authority's observation is that these benefits were ineligible on exports made under the DFIA scheme.

The filing's Annexure A lists the tax at ₹24.52 lakh, with interest and penalty to be calculated, and gives a total of ₹24.52 lakh. Because the interest and penalty are not yet quantified, the total in the annexure covers only the tax amount.

The company's response

Thirumalai Chemicals says it believes the demands are erroneous and not sustainable, because the RoDTEP benefits were auto filled while the shipping bills were filed through the customs portal. It will submit its response before the authority within prescribed timelines.

The company also says the financial implication, if any, is likely to be very insignificant and will not have any material impact on its financial position. That is the company's own view; the filing does not give a supporting calculation.

What the audit observation means for Thirumalai Chemicals' shareholders

The observation seeks a tax amount of ₹24.52 lakh, with interest and penalty to follow, and the company has said it will respond to the authority. The company's view is that the effect will not be material to its financial position.

The filing does not say the amount of interest or penalty, the period and number of shipping bills covered, the date for the company's response, the outcome of that response, or whether any provision has been made in the accounts for the amount. The next step is the company's response within prescribed timelines, which the filing does not date.

Reference: Original filing (PDF)

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