PremiumThe Samsung India Electronics has responded to the reports stating that Directorate of Revenue Intelligence (DRI) has issued show cause notice to the copmany.
The company in its response has said that it is reviewing a government notice related to a tax dispute, as reported by Reuters.
Earlier, Economic Times had reported that DRI issued show cause notice to SIEL.
As per the report, it has accused the local unit of South Korea's Samsung Electronics of evading import taxes worth ₹1,728.47 crore by misclassifying a product. The agency has also asked why it should not recover the money as duty along with the interest. Earlier this week, the notice was issued by Nhava Sheva Customs, the report stated.
The agency has also asked as why a penalty should not be imposed on senior management of the company.
Apart from the SIEL, DRI, in its notice, has also issued notice to PricewaterhouseCoopers Pvt Ltd (PwC) and an associate director who was questioned during the probe, as per the report.
As per the ET report, the notice by the agency has also asked as why the department should not adjust ₹300 crore deposited by SIEL towards payment of differential duty.
The report further states that both the SIEL and PwC has been given 30 days to reply to the notice.
DRI in its notice said SIEL misclassified networking devices called remote radio heads to avail undue exemption of basic customs duty, as per the report.
The agency sent Samsung India and PricewaterhouseCoopers Pvt Ltd (PwC), which was hired to classify the network equipment, a show cause notice, the report said.
(With inputs from Reuters)