Samsung under DRI scanner

South Korean electronics major, Samsung has received a show cause notice from the directorate of Revenue Intelligence (DRI) for an alleged import duty evasion of approximately Rs.70 Crore. The DRI has accused Samsung for importing tablets worth Rs 460 crore two years ago and declaring them as mobile phones and evaded import duty.

The government agency put questioned as why the consignment could not be seized. The two year old dispute was mainly over the classification whether the import consignment was mobiles or tablets. Since the import duty on tablets is roughly around 12% and on cellphones only 1%, DRI feels that the company has illegally imported tablets in name of mobile phones.