The Bombay High Court has filed an affidavit to the Customs Department asking to explain how the Skoda Auto Foxwagen India demanding a tax seeker of September 2024, which demands a tax of $ 1.4 billion from India, does not fall into the time -limit ban.
A bench of Justice BP Kolabawala and Justice Firdaus Pooniwala passed the order while hearing a petition filed by the vehicle manufacturer company. The department has to file its affidavit by 10 March. In this petition, the tax notice has been challenged as arbitrary and illegal. The vehicle company has described the tax demand of more than $ 1.4 billion, or more than Rs 12,000 crore, as ‘too much’. The Seema Shulk Department said in the notice that the company had given misleading information about its imports.
The company incorrectly introduced its imports of Audi, Skoda and Foxwagen cars incorrectly as different parts rather than ‘fully prepared’ (CKD) units, making it to pay much low customs duty. On this, Skoda Auto Focuswagen India says that the Customs Department cannot demand tax from it after so many years. The company has been paying taxes on imports of different parts for a decade. In such a situation, it is not appropriate for the department to ask for tax payment according to the CKD unit category.
After hearing the arguments of both sides, the bench said that it would decide on this issue only at this level at the point of time. Imports of CKD units from abroad are charged 30-35 percent duty while five -15 percent duty is imposed for imports as different parts.
First Published – February 26, 2025 | 10:31 pm IST
(Business Standard Staff has changed the headline and photo of this report, the rest of the news has been published without any change from a common news source.)