Borosil Renewables Limited, a leading domestic manufacturer of solar glass, has been directed to pay a redemption fine and penalties totalling about ₹60.3 lakh after customs authorities rejected the tariff classification it declared for part of the plant and machinery imported for its new solar glass manufacturing project. The company disclosed the development to the stock exchanges on October 17, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Details of the Adjudication Order
The order was passed on October 15, 2026, by the Additional Commissioner of Customs (NS-V), Jawaharlal Nehru Custom House (JNCH), Nhava Sheva, and was received by the company on October 16. According to the disclosure, Borosil Renewables is in the process of importing a large quantum of capital goods for the project. The adjudicating authority rejected the declared description and classification of a small portion of these goods, holding that they had been filed under an incorrect Custom Tariff Item (CTI). The key elements of the order are summarised below.
| Action | Provision (Customs Act, 1962) | Amount |
| Confiscation of seized goods | Section 111(m) | Goods valued at ₹14,14,43,335 |
| Redemption fine (option to redeem goods) | Section 125(1) | ₹30,00,000 |
| Penalty | Section 112(a)(ii) | ₹30,000 |
| Penalty | Section 114AA | ₹30,00,000 |
| Total fine and penalties payable | — | ₹60,30,000 |
While the goods have been held liable to confiscation, the authority has given the company the option to redeem them on payment of the fine. The total outflow of ₹60.3 lakh is therefore a small fraction of the ₹14.14 crore value of the goods in question.
Provisions Invoked
Section 111(m) of the Customs Act covers imported goods that do not correspond in value or any other particular with the entry made under the Act, while Section 125 allows the adjudicating officer to offer the owner an option to pay a fine in lieu of confiscation. Section 112(a) provides for penalties where an act or omission renders goods liable to confiscation. Section 114AA applies where a person knowingly or intentionally makes or uses a declaration or document that is false or incorrect in any material particular.
Company’s Response
Borosil Renewables has stated that the aggregate financial impact will not have any material effect on its operations. The company is paying the redemption fine and penalties under protest and intends to avail appropriate legal recourse by filing an appeal before the Commissioner of Customs (Appeals). Under Section 128 of the Customs Act, an appeal against such an order lies with the Commissioner of Customs (Appeals), JNCH, and is ordinarily to be filed within sixty days of the order being communicated.
Earlier Show Cause Notice
The order comes about four months after Borosil Renewables disclosed, on June 1, 2026, that it had received a Show Cause Notice dated May 15, 2026, from the Office of the Commissioner of Customs (NS-V), JNCH, Nhava Sheva. That notice alleged short payment of customs duty of ₹13.30 crore in respect of the tariff classification of two items of capital goods, and asked why the amount should not be demanded along with interest and penalty. At the time, the company said it was evaluating the matter and would respond within the prescribed period. Both matters concern the classification of imported capital goods before the same customs formation.
Expansion Project at Bharuch
The imports relate to the company’s ongoing capacity expansion at Bharuch, Gujarat, where it is setting up two new furnaces, SG-4 and SG-5, of 300 tonnes per day (TPD) each. The project will raise its installed solar glass capacity from 1,000 TPD to 1,600 TPD.
On September 22, 2026, the Board approved a revised project cost of up to ₹1,100 crore, against the earlier estimate of ₹950 crore, and moved the commissioning timeline from December 2026 to the end of March 2027. The company attributed the revision to supply chain disruptions, exchange rate fluctuations and higher commodity costs arising from the conflict in the Middle East, along with an expansion in project scope. The Board also noted that the company would be eligible to apply for incentives under the Viksit Gujarat Industrial Policy – 2026, including interest subsidy, power tariff subsidy, capital subsidy and EPF reimbursement.
Trade Policy Backdrop
The expansion has been planned against a series of trade measures supporting domestic solar glass production. A 10% basic customs duty on solar glass imports took effect from October 1, 2024, following the withdrawal of the earlier exemption for use in solar cell and module manufacturing. In May 2025, the Ministry of Finance notified anti-dumping duty on solar glass imported from China and Vietnam for five years with effect from December 4, 2024. The countervailing duty on solar glass from Malaysia, first imposed in March 2021, was extended for a further five years in June 2026 after a sunset review by the Directorate General of Trade Remedies (DGTR).
What Lies Ahead
The appeal before the Commissioner of Customs (Appeals) will determine whether the classification adopted by the department is upheld and whether the fine and penalties paid under protest are retained. For now, the company has indicated that the order does not affect its operations, and attention remains on the timely commissioning of the Bharuch furnaces scheduled for March 2027.
Official Sources
- Borosil Renewables – Disclosure under Regulation 30 on receipt of adjudication order from Additional Commissioner of Customs (NS-V), JNCH, Nhava Sheva (NSE filing, October 17, 2026): https://nsearchives.nseindia.com/corporate/BORORENEW12_17102026142319_INTIMATION.pdf
- Borosil Renewables – Disclosure of Show Cause Notice under the Customs Act, 1962 (NSE filing, June 1, 2026): https://nsearchives.nseindia.com/corporate/BORORENEW12_01062026144639_Intimation.pdf
- Borosil Renewables – Outcome of Board Meeting held on September 22, 2026 (NSE filing): https://nsearchives.nseindia.com/corporate/BORORENEW12_22092026120903_OUTCOME_1_-_revised.pdf
- Borosil Renewables – Intimation on imposition of anti-dumping duty on solar glass from China and Vietnam (NSE filing, May 9, 2025): https://nsearchives.nseindia.com/corporate/BORORENEW1_09052025142056_SEINtimation.pdf
- Borosil Renewables – Intimation on extension of countervailing duty on solar glass from Malaysia (NSE filing, December 18, 2025): https://nsearchives.nseindia.com/corporate/BORORENEW1_18122025194327_SEIntimation_CVD.pdf
- The Customs Act, 1962 – India Code, Government of India: https://www.indiacode.nic.in/handle/123456789/2475
- Directorate General of Trade Remedies, Ministry of Commerce & Industry: https://www.dgtr.gov.in
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