United Parcel Service, Inc. (NYSE:UPS) is being hit with a $247 million fine for illegal cigarette shipments.

The shipping company was hit with the large fine for sending shipments containing tobacco in New York and NYC. The shipments mostly came from tobacco shops on Indian reserves and weren’t taxed. The court rulings states that United Parcel Service, Inc. has shipped more than 683,000 cartons of untaxed cigarettes since 2010.

United Parcel Service, Inc. isn’t happy with the large fine that it is being hit with. The company says that it is much too high for the shipments that only made it $1 million in revenue. The court argues that it doesn’t think modest fines would leave a lasting impact on the company.

The $247 million fine that United Parcel Service, Inc. will have to pay will go to two different groups. The first is the state of New York, which will get $165.8 million from the case. The next is NYC and it will be getting remaining $81.2 million of the money, reports Reuters.

“New York’s action sought to force UPS to serve in a quasi-law enforcement role which involved monitoring, inspecting and reporting package contents, which is not appropriate for a common carrier,” Steve Gaut, a United Parcel Service, Inc. spokesman, said in a statement.

United Parcel Service, Inc. says that it is planning to appeal the court’s decision. It claims that the heavy fine against it is far beyond “constitutional limits” and is “excessive.”

UPS stock was largely unaffected by the news.