New Delhi, Sep 25 (IANS) LG Electronics India Ltd has received a show cause notice from the Customs authorities for the recovery of Rs 153.58 crore as customs duty for allegedly not including royalty payments in the assessable value of certain imported goods, the company has stated in a stock exchange filing.
The show cause notice has been issued following an investigation carried out by the Directorate of Revenue Intelligence (DRI), alleging non-inclusion of royalty payments in the assessable value of certain imported goods.
The notice, dated September 22, was issued by the Office of the Commissioner of Customs, Nhava Sheva Port in Navi Mumbai, and was received by the company on September 24.
Meanwhile, LG Electronics, along with arch rival and compatriot Samsung, are also facing an investigation for alleged wrong claims of concessional 5 per cent customs duty on imported OLED glass screens. The DRI authorities have expressed the view that the concessional rate is meant for the older LCD and LEDs used in products sold in the mass market. For OLED parts, the Directorate of Revenue Intelligence is of the opinion that both Samsung and LG should have paid a 15 per cent customs duty, according to a Reuters report.
LG Electronics is reported to have sent responses to written questions by the authorities on its OLED imports and has voluntarily deposited the money to pay for the difference in customs duty as estimated by officials.
Meanwhile, LG Electronics India reported a 27.2 per cent year-on-year surge in net profit to Rs 653 crore for the first quarter of financial year 2026-27compared with the corresponding figure of Rs 513 crore in the same quarter of 2025-26, driven by strong summer demand and premium product sales.
The company’s revenue rose 15.5 per cent during the April-June quarter to Rs 7,233 crore compared with the corresponding figure of Rs 6,262 crore in the same quarter of the previous financial year.
–IANS
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