Samsung gets notice for Rs 70-crore duty evasion

KOLKATA: The Directorate of Revenue Intelligence (DRI) has slapped a show cause notice on South Korean electronics major Samsung for an alleged import duty evasion of nearly Rs 70 crore, an official at the company’s India unit said. While the official didn’t elaborate on specifics, people familiar with the matter said Tuesday that the DRI has accused Samsung of allegedly importing tablets worth nearly Rs 460 crore some two years ago and declaring them as mobile phones, and in the process, evading import duty.

The government agency has demanded why the consignment should not be seized , the people said. One of them said that the nearly two-year old dispute was over classification on whether the import consignments in this case were tablets or mobiles. Import duty on tablets is roughly 12% while cellphones attract only 1%. The company didn’t specify the date of the DRI notice.

“We will fully cooperate with the relevant government authorities and clear up any misunderstandings.

We have faithfully complied with the rules and regulations of Indian customs and have paid all import duties as advised,” a Samsung spokeswoman said in an emailed response to ET’s queries.