Disclosure under Regulation 30 of SEBI LODR
LG Electronics India Limited has made a regulatory disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Nature of the Event
The Company received an Order-in-Original (OIO) dated October 30, 2026, issued by the Office of the Principal Commissioner of Customs (Import), Air Cargo Complex, Sahar, Andheri (East), Mumbai-400099. The order was received on October 30, 2026, at 19:07 hours (IST).
Details of the Customs Order
The Order-in-Original was issued pursuant to Show Cause Notice No. 117/2026-27 dated May 22, 2026. The adjudicating authority rejected the classification adopted by the Company for Commercial Signage Display under Customs Tariff Heading (CTH) 85285200 and denied the benefit of Notification No. 24/2005-Cus., which provides for Basic Customs Duty (BCD) at 0%.
Accordingly, the Customs Department has reclassified the goods under CTH 85285900, attracting BCD @ 10% and IGST @ 28%. This reclassification pertains specifically to Bill of Entry No. 2178521 dated February 17, 2024.
Financial Impact
As a consequence of the reclassification, the adjudicating authority has:
- Confirmed a differential customs duty demand of ₹61,30,064
- Imposed a redemption fine of ₹40,00,000
- Levied a penalty of ₹5,00,000 on the Company
Total financial impact amounts to ₹1,06,30,064.
Violation Details
The matter pertains to the classification of Commercial Signage Display imported by the Company. The violation alleged is the adoption of an incorrect classification that resulted in claiming undue benefit of customs notification providing for nil duty.
Company's Response
The Company is currently evaluating the implications of the order and determining the appropriate course of action.