Update on a Pending Material Litigation

Polyspin Exports informed the stock exchange about a development in an ongoing customs/excise duty dispute that dates back to 2016. The dispute relates to a total duty demand of Rs. 3.31 crore raised by the Commissioner of Central Excise, Tirunelveli, covering periods from June 2008 to March 2015, for alleged consumption of raw materials in production beyond the Standard Input Output Norm (SION) fixed by DGGT. The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) issued its final order on December 26, 2025. The Tribunal set aside all penalties imposed on the company, which is a relief. However, the core duty demand on merits, along with the invocation of the extended period, has been remanded back to the Original Adjudicating Authority for fresh consideration and a fresh speaking order.