MRF wins key customs lawsuit, earlier penalties dismissed

MRF Limited announced a favorable outcome in a long-standing legal dispute regarding the eligibility of Modvat credit taken on imports under the Value Based Advance License Scheme (VABAL). The Madras High Court heard Civil Misc. Appeals on August 23, 2024, August 30, 2024, and September 2, 2024, with orders reserved until April 30, 2025. The court has now ruled in favor of MRF, allowing the company's C.M.A. No. 2384 of 2006 and dismissing the Department's C.M.A. No. 3070 of 2006. The litigation concerned a claim of INR 74.70 crores.