J.B. Chemicals & Pharmaceuticals faces multiple tax and customs orders

J.B. Chemicals & Pharmaceuticals announced on September 8, 2025, that it has received five orders from the Department of Income-Tax and Customs. These orders include matters related to disallowed expenses and review proceedings under the Income-tax Act, 1961, for assessment years 2016-17, 2017-18, and 2021-22. The company is in the process of filing appeals for certain disallowed expenses.

One order from the Office of the commissioner of customs (exports) demands a duty drawback of approximately INR 12 lakhs, plus applicable interest and a penalty of INR 1.25 lakhs. This relates to delayed receipt of export proceeds beyond the prescribed time. Another order from the commissioner of customs (exports) pertains to a demand of duty drawback of approximately INR 6 lakhs along with applicable interest and penalty of INR 1.25 lakhs due to delayed or non-issuance of eBRC.

The company stated that the delay in disclosing these orders was due to festivals. While some proceedings have been dropped, others involve remanding matters back to assessing officers for further verification. The company maintains that the customs order has no impact on its financial, operational, or other activities.