Customs Department Imposes Rs 1.06 Crore Duty, Fine and Penalty on LG Electronics India. Read the key points, why it matters and what businesses should watch next.
Customs Slaps Rs 1.06 Crore Demand on LG India
The Office of the Principal Commissioner of Customs (Import), Mumbai, has passed an Order-in-Original dated October 30, 2026 against LG Electronics India, imposing a combined liability of roughly Rs 1.06 crore. The dispute concerns the classification of commercial signage displays that the company imported. LG Electronics India disclosed the development to stock exchanges through a regulatory filing dated October 31, 2026.
The company had classified the imported displays under Customs Tariff Heading 85285200, a position that allowed it to claim a basic customs duty exemption under Notification No. 24/2005-Cus. The Customs Department rejected this classification and instead placed the goods under CTH 85285900, which attracts basic customs duty of 10% and Integrated Goods and Services Tax of 28%.
Why The Classification Matters
On the back of the reclassification, the authority has raised an additional customs duty demand of Rs 61.30 lakh. It has also imposed a redemption fine of Rs 40 lakh and a penalty of Rs 5 lakh. The proceedings trace back to Bill of Entry No. 2178521 dated February 17, 2024, and follow a show-cause notice issued on May 22, 2026.
The case turns on tariff entry selection rather than any allegation of misdeclaration of value or concealment, which is why the financial exposure is split between duty, fine and penalty. Each head carries different implications for accounting, disclosure and appeal strategy.
What Businesses Should Watch
LG Electronics India has stated that it is evaluating the implications of the order and will decide on the appropriate course of action. That leaves open the possibility of an appeal before the appellate customs authorities or further proceedings.
For importers of similar electronic display products, the order reinforces that the exemption under Notification No. 24/2005-Cus is contingent on classification under a specific tariff heading. A shift of even one sub-headin…
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