Customs Department Imposes Rs 1.06 Crore Duty, Fine and Penalty on LG Electronics India:

Customs has passed an order against LG Electronics India levying a total financial liability of around Rs 1.06 crore in connection with classification of imported commercial signage displays.

The company vide a regulatory filing dated October 31, 2026 informed the stock exchanges that it has received an Order-in-Original from Office of the Principal Commissioner of Customs (Import), Mumbai dated October 30, 2026.

The order relates to classification of commercial signage displays imported by LG Electronics India. The Customs Department has not accepted the company’s classification of these products under Customs Tariff Heading (CTH) 85285200 which enabled the company to claim a basic customs duty exemption under Notification No. 24/2005-Cus.

Instead, the authority has classified the products under CTH 85285900 which is liable to basic customs duty (BCD) of 10% and Integrated Goods and Services Tax (IGST) of 28%.

Hence, the customs authority has raised a demand of additional customs duty of Rs 61.30 lakh. It has also levied a redemption fine of Rs 40 lakh and a penalty of Rs 5 lakh on the company. The case relates to Bill of Entry No. 2178521 dated February 17, 2024, and follows a show-cause notice issued on May 22, 2026.

LG Electronics India said it is currently evaluating the implications of the order and will decide on the appropriate course of action. The total amount involved in the order, including the additional duty, fine and penalty, stands at approximately Rs 1.06 crore.