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DRI plans to seize Galaxy Tab 2 tablets worth Rs 474 crore as Samsung evades import duty

Directorate of Revenue Intelligence (DRI) is on Samsung's tail as the electronics manufacturer allegedly evaded import duty taxes of about Rs 72 crore. Now DRI wants to confiscate Galaxy Tab 2 P3100 d

Samsung-DRI

Directorate of Revenue Intelligence (DRI) is on Samsung’s tail as the electronics manufacturer allegedly evaded import duty taxes of about Rs 72 crore. Now DRI wants to confiscate Galaxy Tab 2 P3100 devices imported in India by the Korean manufacturer between April 2012 to February 2013.

According to a report by The Times of India, Samsung had imported Galaxy Tab 2 units worth Rs 464 crores between April 2012 and February 2013 from Korea, and avoided massive taxes by declaring the device as a mobile phone. Import duty on tablets was 12 percent at the time while that on tablets. Samsung’s Galaxy Tab 2 P3100 has voice calling feature which means it could be used as a mobile phone as well. This could have created a grey area whether to classify the devices as mobile phones or tablets.

After investigating the matter, DRI issued a notice and has now proposed to confiscate the devices. Meanwhile, in the reply to DRI, Samsung’s CFO Seo Eung Kyo called the Galaxy Tab2 P3100 a tablet, and not a mobile phone as mentioned at the time of import, the report claims. Also, Central Board of Excise and Customs clarified the matter by classifying the device as a tablet.

  • Published Date: March 16, 2014 4:25 PM IST
  • Updated Date: March 16, 2014 4:26 PM IST