Samsung India challenges $500 million customs penalty over Telecom equipment imports

Consumer electronics giant Samsung India approached the customs, excise and service tax appellate tribunal ( CESTAT ) in Mumbai to contest a massive penalty of over $500 million (almost Rs 4,200 crore) imposed by Indian customs authorities.

The penalty was imposed after allegations that the electronic giant wrongly classified certain telecom equipment imports , such as networking gear, leading to a lower customs duty. Sources told PTI that the network division of Samsung India used classifications that attracted 10–20% duties.

A similar allegation was previously flagged by the customs department.

The company supplied the network equipment in question to Reliance Jio , the telecom arm of billionaire Mukesh Ambani's Reliance Industries.

Samsung’s appeal has been filed through law firm Lakshmikumaran & Sridharan, but the matter is yet to be listed for hearing before the Mumbai bench of CESTAT.

Samsung India Electronics reported revenues nearing Rs 1 lakh crore for the financial year 2023–24, with Rs 16,626 crore attributed to its network business alone.