Samsung India Says Exploring Legal Opinion After DRI Notice Over Alleged Tax Evasion: Report

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“This is a tax dispute involving interpretation of law. We are reviewing the notice and are exploring legal opinion,” a Samsung India spokesperson said in an email to Reuters

Samsung India Says Exploring Legal Opinion After DRI Notice Over Alleged Tax Evasion: Report
Samsung India Says Exploring Legal Opinion After DRI Notice Over Alleged Tax Evasion: Report

New Delhi: Samsung India Electronics (SIEL) is reviewing a government notice related to a tax dispute, it said on Thursday, after a media report said Directorate of Revenue Intelligence (DRI) sent Samsung India a show cause notice asking why the agency should not recover Rs 1,728.47 crore as duty along with interest from the subsidiary of South Korea’s Samsung Electronics for alleged customs duty evasion.

“This is a tax dispute involving interpretation of law. We are reviewing the notice and are exploring legal opinion,” a Samsung India spokesperson said in an email to Reuters but did not give further details, including specifics about the tax dispute.

The Economic Times reported that based on a case registered by DRI, the notice was issued by Nhava Sheva Customs earlier this week. It is said that the notice by the DRI also asked why a penalty should not be imposed against the senior management of the company. The DRI also issued a show cause notice to PricewaterhouseCoopers Pvt Ltd (PwC) and an associate director, who was questioned during the probe, said the ET report.

PwC is a Gurgaon business service provider who was reportedly engaged by SIEL for classification of network equipment. The same deal is under the scanner. As per the report, the issue pertains to alleged misdeclaration in importing remote radio head (RRH), a networking device, and its alleged misclassification by SIEL, in order to wrongly avail undue exemption of basic customs duty.

The notice asked why “the impugned goods, having total accessible value of Rs 6,72,821 crore, imported under the bills of entry should not be held liable for confiscation under the provisions of section 111 (m) of the Customs Act, 1962”, ET reported a person who quoted the notice.

The agency further asked why the “differential duty (of) Rs 1,728.47 crore in respect of the bills of entry should not be demanded and recovered from them under the provisions of section 28 (4) of the Customs Act, along with interest at the applicable rate,” it added.

Gurgaon-based SIEL and the individuals summoned have a 30-day period to reply to the adjudicating authority.




Published Date: January 12, 2023 2:37 PM IST





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