NEW DELHI: South Korean tech-giant Samsung on Thursday said it is reviewing the show cause notice issued by Directorate of Revenue Intelligence (DRI) to its Indian unit for tax evasion of Rs 1,728.47 crore.
As per the reports, DRI sent Samsung India a show cause notice asking it why the agency should not recover Rs 1,728.47 crore as duty along with interest.
“This is a tax dispute involving interpretation of law. We are reviewing the notice and are exploring legal opinion,” a Samsung India spokesperson. As per the reports, Samsung India Electronics Ltd (SEIL) misclassified networking devices called remote radio heads to avail undue exemption of basic customs duty.
The DRI issued a show cause notice to PricewaterhouseCoopers Pvt Ltd (PwC) and an associate director, who was questioned during the probe. PwC is a Gurgaon business service provider that was reportedly engaged by SIEL for classification of network equipment. The same deal is under the scanner.
The agency asked the company 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 applicable rate. Gurgaon-based SIEL and the individuals summoned have a 30-day period to reply to the adjudicating authority.