Joint Commissioner of Customs demands ₹12.69 lakh penalty; company says impact is immaterial and will contest the order
Kochi, October 28, 2025:
Apollo Tyres Ltd, one of India’s leading tyre manufacturers, has announced that it has received an order from the Joint Commissioner (Customs), Nhava Sheva, demanding an anti-dumping duty (ADD) adjustment and a penalty of ₹12.69 lakh under the Customs Act, 1962. The company confirmed it will appeal the order, asserting that the issue will have no material impact on its operations or financial performance.
In its regulatory filing, Apollo Tyres stated that the order pertains to an alleged short payment of anti-dumping duty during import-related transactions. The company said it “does not expect any material effect on its financial, operational, or other activities” and has decided to challenge the decision before the appropriate appellate authority.
Understanding the Issue
Anti-dumping duties are levied by the government to protect domestic industries from cheaper imports that are sold below fair market value. In the tyre sector, such duties often apply to imports from countries like China and Thailand, where production costs are lower. The issue with Apollo Tyres appears to stem from classification or valuation discrepancies detected during customs assessment.
Experts in indirect taxation note that such disputes are not uncommon in the manufacturing sector. “Anti-dumping duty assessments are often complex, involving interpretations of trade agreements, product specifications, and valuation methods,” said a senior trade consultant. “In most cases, the quantum of penalty is small, but the compliance burden and administrative time cost are significant.”
Company’s Response and Legal Route
Apollo Tyres has chosen to exercise its appellate rights under Indian customs law, which allows importers to challenge such orders before the Commissioner (Appeals) and, if necessary, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). Legal experts expect the case to be resolved without major implications for the company.
“Given the modest penalty size, the issue appears procedural rather than substantial,” said a partner at a leading law firm specialising in indirect tax litigation. “Apollo Tyres is acting prudently by contesting it early, as such precedents can have implications for future imports.”
Apollo Tyres’ Business Outlook Remains Robust
While the duty issue is minor, Apollo Tyres’ overall business trajectory remains strong. The company has been expanding its premium radial tyre segment for passenger cars and commercial vehicles, focusing on both Indian and export markets. It recently commissioned capacity upgrades at its Chennai and Andhra Pradesh plants, boosting production efficiency and export readiness.
Apollo Tyres reported consolidated revenues of over ₹25,000 crore in FY2025, with strong demand from the replacement and OEM (original equipment manufacturer) segments. The company continues to strengthen its presence in Europe, where its subsidiary Vredestein is performing well amid a growing preference for high-performance tyres.
Industry analysts say the penalty, though newsworthy, is negligible in the context of Apollo’s operations. “A ₹12.69 lakh duty demand is insignificant for a company of Apollo’s scale,” said an analyst at ICICI Securities. “What matters is Apollo’s continued expansion in global markets, brand consolidation, and its focus on sustainable manufacturing practices.”
Sector Context and Trade Compliance
The tyre sector has faced frequent customs scrutiny in recent years due to anti-dumping duty regimes designed to protect domestic manufacturers from cheap imports, especially from East Asia. Several companies, including CEAT and JK Tyre, have also dealt with similar cases, most of which were resolved without major financial consequences.
Apollo Tyres’ decision to appeal underlines a growing trend among Indian manufacturers — vigilance toward compliance and proactive legal defence. The company’s swift disclosure to stock exchanges also reflects a commitment to transparency, a key factor for investor confidence in a regulatory environment that’s becoming increasingly strict.
Conclusion
While the customs order represents a temporary compliance hiccup, Apollo Tyres’ fundamentals remain unaffected. The company’s focus on operational expansion, brand growth, and international competitiveness continues to define its trajectory. The minor penalty serves as a reminder of the complex interplay between trade regulation and manufacturing agility in India’s evolving industrial landscape.