New Delhi, Feb. 25 -- The Supreme Court has issued notice to the customs department in an appeal filed by Xiaomi Corp., challenging a tribunal ruling that said the company had evaded about $72 million in tariffs by excluding royalty payments from the value of imported goods.

A bench of Justice P. S. Narasimha and Justice Alok Aradhe issued notice to the customs department on 23 February on the plea. The written order is yet to be released.

The bench, in its verbal observation, said, "Let notice be issued. Take instructions and file a short note explaining what it is."

The Chinese multinational company has approached the top court along with its former contract manufacturers, including Flextronics Technologies India Pvt. Ltd., a unit of...