LG Electronics India Gets ₹153.58 Crore Customs Duty Notice Over Royalty Payments

Customs authorities in India have issued a show cause notice to LG Electronics India Ltd for failing to include royalty payments in the assessable value of certain imported goods. The company has been requested to explain why it did not account for these payments, leading to the recovery of Rs 153.58 crore in customs duty. The investigation was conducted by the Directorate of Revenue Intelligence (DRI) and was initiated following an allegation that royalty payments were not included in the assessable value of imported goods.

The notice was issued by the Office of the Commissioner of Customs at Nhava Sheva Port in Navi Mumbai on September 22 and received by the company on September 24. It is reported that LG Electronics, along with Samsung, is facing an investigation for allegedly making wrong claims regarding concessional 5% customs duty on imported OLED glass screens.

The Directorate of Revenue Intelligence has suggested that both Samsung and LG should have paid a 15% customs duty on OLED parts, as older LCD and LED products were intended for the concessional rate. LG Electronics has voluntarily paid the estimated difference in customs duty and responded to written queries from the authorities regarding its OLED imports.