LG Electronics India Gets INR 153.58 Crore Customs Notice: Why Was It Issued?

LG Electronics India Ltd has received a show cause notice from Customs authorities proposing recovery of Rs 153.58 crore in customs duty over the alleged non-inclusion of royalty payments in the assessable value of certain imported goods. The notice, dated September 22, was issued by the Office of the Commissioner of Customs, Nhava Sheva Port in Navi Mumbai, following an investigation by the Directorate of Revenue Intelligence (DRI). LG Electronics India received the notice on September 24, according to the company's stock exchange disclosure.

Customs Notice Over Royalty Payments

The proceedings relate to the alleged non-inclusion of royalty payments while determining the assessable value of certain imported goods. Customs authorities have proposed a recovery of Rs 153.58 crore on the grounds that the omission resulted in a short payment of customs duty. The notice is a show cause notice and does not by itself represent a final determination of the company's liability. LG Electronics India is expected to submit its response to the appropriate authority within the prescribed timeline. LG Electronics Adopts Human Rights Principles To Prevent Violations in the Company.

Separate DRI Probe Into OLED TV Components

The customs notice comes amid a separate DRI investigation involving LG Electronics and Samsung over the import duty applicable to OLED television display components. According to reports, the investigation concerns "open cell" display components used in OLED televisions. Authorities are examining whether the companies claimed a concessional 5 per cent customs duty rate when a higher 15 per cent rate should have applied.

LG and Samsung have maintained that OLED components qualify for the lower tariff treatment, according to the reports. The OLED tariff investigation is separate from the latest Rs 153.58 crore show cause notice concerning royalty payments.

LG Electronics India Reports Strong Q1 Performance

The customs development comes after LG Electronics India reported strong financial results for the April-June quarter of financial year 2026-27. The company's net profit rose 27.2 per cent year-on-year to Rs 653 crore, compared with Rs 513 crore in the corresponding quarter of the previous financial year. Revenue from operations increased 15.5 per cent to Rs 7,233 crore during the quarter from Rs 6,263 crore a year earlier. The company attributed the performance to strong summer demand and sales of premium products. LG Shutting Down Update Servers From June 30, 2025, Old Phones Will Stop Receiving OTA Updates or LG Bridge Support As Company Leaves Smartphone Business.

Customs Scrutiny of Electronics Imports

The latest notice adds to regulatory scrutiny of import-related practices involving major electronics manufacturers operating in India. While the Rs 153.58 crore notice concerns the valuation of imported goods and royalty payments, the separate OLED investigation focuses on the applicable customs duty classification for display components. The outcome of the latest show cause proceedings will depend on the company's response and subsequent adjudication by the customs authorities.

(The above story first appeared on LatestLY on Sep 25, 2026 03:53 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).