L.G. Electronics

The Supreme Court has held that LG Electronics is exempted from paying customs duty on imported 'G Watch W7' smartwatches from South Korea. The bench of Justice J.B.Pardiwala and Justice Sandeep Mehta has observed that the Original Certificate of Origin is enough to be entitled to the benefit of the Notification 151/2009, which fully exempts customs duty on the basis of agreement signed between India and South Korea. The appellant, L.G. Electronics imported 2000 units of “G Watch (Smart Watch)” from the Republic of Korea vide two bills of entry bearing Nos.2370169 and 2375523 respectively both dated 11-3-2019. The appellant classified the goods under CTH 91021900 and accordingly assessed the basic customs duty at the rate of “nil” after claiming the benefit of entry Sl. No.955 of Notification No.152/2000–CUs dated 31-12-2009 The appellant, L.G. Electronics has filed the appeals under Section 130E of the Customs Act, 1962 against the order passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (CESTAT)by which order in original passed by the Principal Commissioner was confirmed. The Tribunal took the view that what was imported may be termed as watches but they were smart watches and being smart watches, the main benefit that the person using it would derive is to constantly update himself, receive or transmit data. In the words of the Tribunal, a smart watch is a wearable computing device that closely resembles a wrist watch or other time keeping device. After the appeals came to be dismissed, the appellant herein preferred a Rectification Application No.50010/24 in the original Customs Appeal bringing it to the notice of the Tribunal that assuming for the moment that the goods imported would fall within entry 8517 6290, still they would be exempt from payment of any duty in light of the Notification No.151/09 dated 31-12-2009. The customs department contended that there is a condition precedent in applying the Notification 151/2009 and the said condition is that the importer has to declare the place of origin and must produce the Certificate of Origin in accordance with the Customs Tariff (Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of the Republic of India and the Republic of Korea). In other words,the goods should have originated from the Republic of South Korea for the purpose of seeking the benefit of the Notification 151/2009. The court while remanding the matter back to the tribunal held that the Original Certificate of Origin which is not disputed otherwise and the appellant is entitled to the benefit of the Notification 151/2009. What is Notification 151/2009? The Central Government, using its powers under Section 25(1) of the Customs Act, 1962, exempts certain goods (listed in the attached table) imported from the Republic of Korea from all customs duty, provided that: The importer proves, to the satisfaction of the Deputy/Assistant Commissioner of Customs, that the goods are of Korean origin, as per the rules given under the India-Korea Preferential Trade Agreement (2009 Rules). This exemption applies from 1st January, 2010. Case Details Case Title: M/S L.G. Electronics India Private Limited Appellant(S) Versus Commissioner Of Customs Case No.: Civil Appeal Nos.10349-10350/2024 Date: 10/09/2025 Click Here To Read Order Read More: Small Businesses With Turnover Less Than Rs. 2 Core Exempted From Filing GST Annual Returns For FY 2024-25: CBIC

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