New Delhi, Sep 25: LG Electronics India has received a show cause notice from Customs proposing recovery of Rs 153.58 crore in customs duty over alleged non-inclusion of royalty payments in the assessable value of certain imported goods, adding to regulatory scrutiny facing the consumer electronics company.
The notice, issued after an investigation by the Directorate of Revenue Intelligence (DRI), was dated September 22 and issued by the Office of the Commissioner of Customs, Nhava Sheva Port, Navi Mumbai. The company received it on September 24 and disclosed the development through a stock exchange filing.
The customs proceedings centre on the allegation that royalty payments linked to certain imported goods were not included while determining their assessable value, resulting in a proposed recovery of customs duty. The notice represents a demand proposed through the adjudication process rather than a final determination of liability.
The development comes as LG Electronics and Samsung are separately facing a DRI investigation concerning the customs duty applied to imported OLED glass screens used in television production. According to a Reuters report, authorities believe the concessional five per cent duty rate applies to older LCD and LED components and that OLED parts imported by the two companies should attract a 15 per cent duty.
LG Electronics has reportedly responded to written questions from authorities concerning its OLED imports and voluntarily deposited an amount towards the difference in customs duty estimated by officials. The investigation concerns the tariff treatment of the imported OLED components and is separate from the newly disclosed show cause notice over royalty payments.
The customs notice comes against the backdrop of a strong first quarter for LG Electronics India in financial year 2026-27. The company reported a 27.2 per cent year-on-year increase in net profit to Rs 653 crore for the April-June quarter, compared with Rs 513 crore in the corresponding quarter of 2025-26.
Revenue from operations rose 15.5 per cent to Rs 7,233 crore during the quarter from Rs 6,263 crore a year earlier. The company attributed the quarter’s performance to strong summer demand and premium product sales.
The latest customs action therefore places a proposed Rs 153.58 crore duty recovery alongside separate scrutiny of the company’s import-duty treatment for OLED components, while its latest quarterly results show continued growth in profit and revenue.
