Everest Kanto Cylinder Limited — Important, 22-07-2025: Disclosure of material issue

**Everest Kanto Cylinder (EKC) Update:**

Customs has raised a demand of ₹66.29 Lakhs in differential duty and a matching penalty of ₹66.29 Lakhs (plus interest) related to imported raw material classification. The total disputed amount is approximately ₹1.33 Cr.

**The Issue:** Customs reclassified EKC's imported goods, claiming they fall under a different tariff item, which would incur higher duties.

**Impact for Investors:** Despite the amount, EKC has stated there's "no material impact" on its financial results or operations. This is a key point to note.

**EKC's Response:** The company will appeal this order to the Customs Tribunal (CESTAT), based on legal counsel and the merits of the case.