LG Electronics India received a customs order demanding Rs 1.06 crore, including penalties and differential duty, regarding the classification of 'Commercial Signage Display' imports. The Customs Department rejected the company's 0% duty claim, shifting the classification to a 10% duty slab. The company is currently reviewing the order to decide on potential legal or appellate remedies.
LG Electronics India Hit With Rs 1.06 Crore Customs Demand
Differential Duty Demand: Rs 0.61 crore. Total Financial Impact: Rs 1.06 crore.
Reader Takeaway: Customs authorities challenged import classification; the company is evaluating an appeal against the duty demand.
What just happened
LG Electronics India Ltd has been served an 'Order-in-Original' by the Office of the Principal Commissioner of Customs (Import), Mumbai. The order, dated October 30, 2026, concerns the classification of 'Commercial Signage Display' units imported by the company. Customs officials rejected the company's classification under CTH 85285200, which previously allowed for a 0% Basic Customs Duty (BCD).
Why this matters
The authorities have reclassified the goods under CTH 85285900, which attracts a 10% BCD and 28% IGST. This reclassification applies to a specific Bill of Entry dated February 17, 2024, resulting in a differential duty demand of Rs 0.61 crore. Additionally, the department has imposed a redemption fine of Rs 0.40 crore and a penalty of Rs 0.05 crore, bringing the total liability to Rs 1.06 crore.
What changes now
LG Electronics India is currently reviewing the legal and financial implications of the order. The company has indicated that it is determining an appropriate course of action, which is likely to involve filing an appeal in a higher appellate forum to contest the reclassification and the associated penalties. Shareholders should monitor whether the company formally challenges the decision, as this could lead to a stay on the payment or a reversal of the liability.