Nestle India Limited on Wednesday announced that it has been hit with a tax penalty of Rs 69.45 lakh after the Appellate Authority upheld an earlier order issued under the Customs Act, 1962. The penalty arose from a customs duty dispute, as the company had initially appealed against the Deputy Commissioner of Customs' decision. However, the appeal was rejected, confirming the demand for customs duty, interest, and an equal penalty amount. In a filing to the stock exchange, Nestle India stated that it had received the penalty order under Section 28 (4) read with Section 28AA of the Customs Act. Despite its challenge, the ruling went in favour of the Revenue Department. "There is no material impact on financials, operations or other activities of the company on account of the order mentioned above. The company will explore various options to challenge the above order," the company said in its filing. Shares of Nestle India closed at Rs 2,240.10 apiece on the Bombay Stock Exchange (BSE) on Wednesday.