Samsung India officials pursue judicial nullification of $81 million tax penalty due to alleged avoidance
Samsung India Executives Challenge $81 Million Penalties in Court
Seven executives from Samsung India have requested a court ruling to revoke penalties totaling $81 million included in the company's $601-million tax demand, according to legal papers and a source. The executives claim that no grave offense was committed and argue the penalty issuance process was "rushed."
The Indian tax authority claimed in January that Samsung and its executives evaded tariffs on imports of mobile tower equipment from 2018 to 2021 by misclassifying them. Samsung is separately challenging the order at the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), where it has defended its declarations and denied any wrongdoing.
The company's India unit originally faced a $520 million tax demand, while executives were requested to pay penalties amounting to $81 million for allegedly "knowingly and intentionally" playing a role in the misclassification of imports.
In a High Court filing in Mumbai, Samsung India logistics executive Ravi Chadha said the authorities issued the penalty within two to three days of receiving lengthy responses from the company and its executives in January, making the process "insufficiently studied." Chadha, who faces a fine of 950 million rupees ($11.1 million), argues that the "exorbitant" penalty is impossible for him to bear due to his earnings.
Samsung India and Chadha have yet to respond to queries regarding the matter. India's tax authority did not respond immediately to requests for comment.
The six other executives, including the network division's vice president and executives from finance and indirect taxes, have also challenged the tax authority's order with similar arguments. Their appeal grounds mirror Chadha's contention that the process was rushed and the penalties are unjustified.
Their ongoing legal proceedings have not resulted in the penalties being overturned as of the latest reports. Samsung continues to defend its positions in separate forums concerning the company-level penalties.
As of May 29, 2025, Samsung India executives have not succeeded in having the $81 million penalty dismissed [1][2][4].
The executives from Samsung India's finance and indirect taxes departments, alongside the network division's vice president, have disputed the issued penalties in a similar manner as Ravi Chadra, the logistics executive, claiming the process was rushed and the penalties unjustified, given their roles in the business operations. Samsung India continues to defend its financial positions in various forums regarding the company-level penalties.
