Samsung Dials Up Appeal: Takes $500-Million Penalty to CESTAT Courtroom

Samsung India has won over the Mumbai-based Customs Excise & Service Tax Appellate Tribunal (CESTAT), contesting a more than $500 million fine by Indian customs officials for improperly classifying imported telecommunication equipment, including networking equipment provided to Reliance Jio. The customs department accused Samsung's network business of using a tariff classification that activates lower rates of 10–20%, which have been increased previously by officials. Samsung, represented by law firm Lakshmikumaran & Sridharan in court, argues that the authorities were aware of the classification all along and that the penalty order was rushed without adequate scope for defence. The appeal has not yet been set for hearing. Samsung India has posted nearly ₹1 lakh crore revenues in FY24 with ₹16,626 crore revenues from its network business. The outcome of this case has the potential to set a valuable precedent for import classification and tariff in India's telecommunication sector.

 

Source: Economic Times, The Hindu Business Line, Times of India