Consumer electronics major Samsung India has filed an appeal with the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Mumbai, contesting a significant penalty of over $500 million (approximately ₹4,200 crore) imposed by Indian customs authorities.
The penalty stems from allegations that the company incorrectly classified certain imported telecom equipment—such as networking gear—to avail lower customs duties. According to sources, Samsung India’s network division reportedly applied product classifications that drew import duties between 10% and 20%, leading to claims of underpayment.
This is not the first time such issues have surfaced; similar concerns had been previously raised by the customs department regarding the classification practices employed by the company.
The imported telecom equipment in question was primarily supplied to Reliance Jio, the telecommunications venture of Reliance Industries, led by billionaire Mukesh Ambani.
Samsung has engaged law firm Lakshmikumaran & Sridharan to represent it in the legal challenge. However, the case is still awaiting listing before the Mumbai bench of CESTAT.
In the financial year 2023–24, Samsung India Electronics posted total revenues approaching ₹1 lakh crore, with ₹16,626 crore generated from its network business alone—a segment that is now under scrutiny.
The outcome of the tribunal proceedings is likely to have significant implications for both Samsung and the broader telecom equipment import ecosystem in India.
