Consumer electronics giant Samsung India has approached the Customs Excise & Service Tax Appellate Tribunal (CESTAT) to contest a penalty of over USD 500 million imposed by Indian customs authorities. The penalty was levied earlier this year for the alleged misclassification of telecom equipment imports, including networking gear.
The company has filed the petition with the Mumbai bench of CESTAT, challenging the penalty. The case revolves around Samsung India’s network division, which is accused of wrongly classifying telecom equipment, thereby attracting a higher tariff of 10-20%. The customs department had raised objections regarding this classification in the past as well.
The petition has been filed by Samsung India through law firm Lakshmikumaran & Sridharan. However, the matter is yet to be listed for hearing. According to sources, the hearing is expected to take place in due course before a CESTAT bench.
Samsung India’s network equipment division has been a key supplier to Reliance Jio, the telecom arm of Mukesh Ambani’s Reliance Industries, which has raised further scrutiny regarding the issue.
Samsung India reported revenues of approximately Rs 1 lakh crore for the 2023-24 fiscal year, with its network division contributing Rs 16,626 crore to the total.