JSW Steel down 2% after challenging Commissioner of Customs' demand order

JSW Steel shares slipped 2.3 per cent in Wednesday's trade, logging an intraday low at Rs 943.5 per share on BSE. The stock fell after the company said it would challenge the Commissioner of Customs' (Export) demand order which imposed a penalty of Rs 1,22,00,000 and a fine of Rs 50,00,000.  Around 1:01 PM, JSW Steel share price was down 2.11 per cent at Rs 946.15 per share on BSE. In comparison, the BSE Sensex was down 0.68 per cent at 80,135.79. The market capitalisation of the company stood at Rs 2,31,376.63 crore. The 52-week high of the stock was at Rs 1,063.35 per share and the 52-week low was at Rs 762 per share. 

 

The Commissioner of Customs (Export) issued demand order for recovery of excess duty drawback amounting to Rs 12,84,976 and recovery of excess Merchandise Exports from India Scheme (MEIS) benefit of Rs 22,36,117 with interest thereon. 

 

The company said that the order was 'not legally sustainable' as no show cause notice was issued for rejecting the Free on Board (FOB) value declared by the company and the said order has been issued without proper appreciation of the submissions made by the company. 

 

JSW Steel added that there will be no impact on the financials, operations or other activities of the company after the development. 

The selling pressure in the stock came after reports suggesting that the Karnataka government is considering an increase in the duty on iron ore. The state reportedly aims to generate approximately Rs 10,000 crore in revenue from iron ore duties this year.

 

Karnataka plays a critical role in India's iron ore sector, as it holds the largest iron ore reserves globally, accounting for 78 per cent of India's total reserves. Additionally, Karnataka is the country's leading producer of iron ore.

 

 

JSW Steel is one of India's leading integrated steel manufacturers and a flagship company of the JSW Group, which is part of the globally renowned O.P. Jindal Group. Established in 1982, JSW Steel has grown into one of the largest and most efficient steel producers in India, with a significant presence in global markets. The company is known for its wide range of steel products and its focus on innovation, sustainability, and technological advancement.

 

In the past one year, JSW Steel shares have gained 13 per cent against Sensex's rise of 13 per cent.