Samsung India Appeals $500M Customs Penalty At CESTAT

Over telecom gear misclassification in a high-stakes case, Samsung India contests a $500M customs penalty that could reshape import rules for global tech giants.

Samsung India has appealed a penalty exceeding $500 million imposed by Indian customs authorities, bringing the case before the Customs Excise & Service Tax Appellate Tribunal (CESTAT) in Mumbai, according to a report by The Economic Times.

The dispute stems from alleged misclassification of imported telecom equipment, including networking gear supplied to telecom giant Reliance Jio. Customs officials claim that Samsung’s network division wrongly declared the equipment under lower-duty categories, resulting in significantly reduced import tariffs. This led to the heavy financial penalty earlier this year.

The appeal has been filed through the law firm Lakshmikumaran & Sridharan. While the case has been officially submitted, it has not yet been scheduled for hearing. CESTAT is expected to list it for proceedings in due course.

Samsung India has not issued a public statement in response to the penalty, despite queries sent by the Press Trust of India (PTI). The network equipment in question was supplied to Reliance Jio, part of Reliance Industries, owned by billionaire Mukesh Ambani.

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Reports suggest that the customs department had previously raised concerns about the classification of the telecom gear, which reportedly attracted a lower import duty rate of 10–20 per cent.

The misclassification has now culminated in one of the largest penalties levied in recent times in India’s telecom and electronics sector.

Samsung India reported total revenues of nearly ₹1 trillion for the financial year 2023–24, with its network business contributing ₹166.26 billion. The outcome of the appeal could have wide-ranging implications for similar cases involving multinational firms and customs compliance in India.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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