LG Electronics India Limited has been served an Order-in-Original by the Office of the Principal Commissioner of Customs (Import). The order mandates a differential customs duty payment of ₹61,30,064, a redemption fine of ₹40,00,000, and a penalty of ₹5,00,000. This follows the reclassification of Commercial Signage Display goods, rejecting the company’s original classification and denying duty benefits.
Customs Authority Issues Order-in-Original
LG Electronics India Limited has received an Order-in-Original dated October 30, 2026, from the Office of the Principal Commissioner of Customs (Import). This order stems from a Show Cause Notice issued on May 22, 2026, concerning the classification of imported Commercial Signage Display goods.
Reclassification and Financial Impact
The adjudicating authority rejected the company’s classification under CTH 85285200 and denied the benefit of Notification No. 24/2005-Cus. Consequently, the goods have been reclassified under CTH 85285900, attracting a Basic Customs Duty (BCD) of 10% and Integrated Goods and Services Tax (IGST) of 28%. This reclassification pertains to a Bill of Entry dated February 17, 2024.
As a result of this order, LG Electronics India has been confirmed to pay a differential customs duty demand amounting to ₹61,30,064. Additionally, a redemption fine of ₹40,00,000 and a penalty of ₹5,00,000 have been levied on the company.
Company’s Response
The company is currently evaluating the full implications of this order and is considering its appropriate course of action.
The information was disclosed as per Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Source: BSE
