LG Electronics India receives show-cause notice over Rs 153.58-cr customs duty

LG Electronics India has received a show-cause notice seeking Rs 153.58 crore in customs duty over alleged non-inclusion of royalty payments in the assessable value of certain imports. The notice followed an investigation by the Directorate of Revenue Intelligence

New Delhi: LG Electronics India Ltd has received a show-cause notice from the Customs authorities seeking recovery of Rs 153.58 crore in customs duty for allegedly not including royalty payments in the assessable value of certain imported goods, the company said in a stock exchange filing.

The notice was issued following an investigation by the Directorate of Revenue Intelligence (DRI), which alleged non-inclusion of royalty payments in the assessable value of certain imported goods.

---

Dated September 22, the notice was issued by the Office of the Commissioner of Customs, Nhava Sheva Port, Navi Mumbai, and was received by the company on September 24.

Meanwhile, LG Electronics, along with compatriot Samsung, is also facing an investigation over alleged incorrect claims of a concessional 5 per cent customs duty on imported OLED glass screens.

According to a Reuters report, DRI officials are of the view that the concessional rate is meant for older LCD and LED components used in mass-market products. For OLED parts, the agency believes Samsung and LG should have paid customs duty at 15 per cent.

LG Electronics has reportedly responded to written queries from the authorities regarding its OLED imports and voluntarily deposited an amount towards the difference in customs duty as estimated by officials, the report said.

Meanwhile, LG Electronics India reported a 27.2 per cent year-on-year rise in net profit to Rs 653 crore in the first quarter of financial year 2026-27, compared with Rs 513 crore in the corresponding quarter of 2025-26.

The company’s revenue rose 15.5 per cent to Rs 7,233 crore in the April-June quarter, compared with Rs 6,262 crore in the same quarter of the previous financial year.