Samsung issued show cause notice: What is the issue

Samsung India Electronics (SIEL) has been issued a show cause notice by the Directorate of Revenue Intelligence (DRI) for alleged customs duty evasion. The notice asks the company why the agency should not recover Rs 1,728.47 crore as duty along with interest from the company. The notice was issued by Nhava Sheva Customs earlier this week based on a case registered by DRI. The notice also asks why a penalty should not be imposed against the senior management of the company. The case is being probed by the Mumbai unit of the DRI.

What is the issue
The issue is related to alleged misdeclaration in importing remote radio head (RRH), a networking device, and its misclassification by SIEL, in order to wrongly avail undue exemption of basic customs duty.