News ArticleLG Electronics India Receives Customs Order with ₹1.06 Crore Duty, Fine, and Penalty for Import Classification Dispute
Customs Authority reclassifies Commercial Signage Displays imported in February 2024, imposing 10% basic customs duty and 28% IGST leading to ₹61 lakh duty demand plus fines; company reviewing next steps
LG Electronics India Limited received a Customs Order-in-Original from the Mumbai Customs Authority on October 30, 2026, reclassifying imported Commercial Signage Displays and imposing a customs duty demand of ₹61,30,064, a redemption fine of ₹40,00,000, and a penalty of ₹5,00,000. The company is assessing the implications and possible responses to this order.
LG Electronics India Limited
Legal / Regulatory
LG Electronics India Limited was issued an Order-in-Original on October 30, 2026, by the Principal Commissioner of Customs, Mumbai, demanding ₹61,30,064 in differential customs duty, levying a redemption fine of ₹40,00,000 and a penalty of ₹5,00,000 related to the import classification of Commercial Signage Displays.
The customs order stems from a Show Cause Notice dated May 22, 2026, where the Customs authority rejected LG India's classification of imported Commercial Signage Displays under Customs Tariff Heading (CTH) 85285200, which qualified for a basic customs duty exemption at 0%.
The authority reclassified these goods under CTH 85285900, subjecting them to 10% basic customs duty (BCD) and 28% Integrated Goods and Services Tax (IGST).
This reclassification applies specifically to the Bill of Entry No. 2178521 dated February 17, 2024. The order confirms differential duty demand amounting to ₹61,30,064, imposes a redemption fine of ₹40,00,000, and a penalty of ₹5,00,000 on the company.
LG Electronics India is currently evaluating the implications of this order and considering appropriate actions in response to the Customs authority's decision.
Highlights
- Order received on October 30, 2026, from Mumbai Customs Authority.
- Reclassification alters tariff code from 85285200 (BCD @0%) to 85285900 (BCD @10%, IGST @28%).
- Differential customs duty demand totals ₹61,30,064.
- Redemption fine imposed: ₹40,00,000.
- Penalty levied: ₹5,00,000.
- Import concerned: Commercial Signage Displays under Bill of Entry dated February 17, 2024.
Key Data Snapshot
What happened
- LG Electronics India received an Order-in-Original on October 30, 2026, from the Principal Commissioner of Customs in Mumbai.
- The order relates to customs classification of imported Commercial Signage Displays under a 2024 Bill of Entry.
- Customs authority rejected LG's initial classification and duty exemption claim under Notification No. 24/2005-Cus.
Key details
- Goods reclassified from CTH 85285200 to CTH 85285900 attracting 10% basic customs duty and 28% IGST.
- Resulting duty demand amounted to ₹61,30,064.
- Additionally, a redemption fine of ₹40,00,000 and a penalty of ₹5,00,000 were imposed.
- The matter originated from a Show Cause Notice dated May 22, 2026.
Regulatory and governance context
- The order was issued by the adjudicating authority under the Office of the Principal Commissioner of Customs (Import), Air Cargo Complex, Sahar, Andheri (East), Mumbai.
- The action reflects enforcement of customs duty classifications and applicable fines for misclassification or non-eligibility for notifications.
Next milestones
- LG Electronics India is currently assessing the impact of the order and deciding on the appropriate course of action.
- No public statements on appeal or compliance measures have been disclosed at this time.
Highlights
- Order received on October 30, 2026, from Mumbai Customs Authority.
- Reclassification alters tariff code from 85285200 (BCD @0%) to 85285900 (BCD @10%, IGST @28%).
- Differential customs duty demand totals ₹61,30,064.
- Redemption fine imposed: ₹40,00,000.
- Penalty levied: ₹5,00,000.
- Import concerned: Commercial Signage Displays under Bill of Entry dated February 17, 2024.
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
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