LG evades payment of crores of rupees as duty

New Delhi, Dec 15: Leading consumer electronics manufacturer LG Electronics has evaded payment of duty amounting to crores of rupees, Minister of State for Finance S S Palanimanickam said.

Initial investigations revealed that LG imported inputs and capital goods and availed credit of additional duty of customs and Special Additonal Duty (SAD) paid at the time of import.

At the time of clearence of these imported inputs and capital goods from the factory premises to the domestic market, the company did not reverse the SAD components.

However, the company has accepted the duty liability and paid an amount of Rs 5.32 crores on this account, the minister said in a writen reply in the Lok Sabha.

On completion of the investigations, action as per the Central Excise Act, 1944 and other applicable rules will be taken against the company, he added.

UNI