Skoda Auto Volkswagen India A new update has come in the case with a tax demand notice of Rs 12,000 crore received from the Custom Department. The Bombay High Court, who is hearing the case, has ordered the Customs Department to file an affidavit. The Custom Department will have to tell in the affidavit of how the show cause notice of September 2024, with a tax -demand of $ 1.4 billion from the company, does not fall into the time -limit ban. Justice B. The bench of P. Kolabawala and Justice Firdaus Pooniwala passed the order while hearing a petition filed by Skoda Auto Volkswagen India.
Custom department will have to file an affidavit by 10 March
On the order of the Bombay High Court, the Customs Department has to file its affidavit by 10 March. Let us tell you that in this petition filed by the automobile company, the tax notice of the Customs Department has been challenged as arbitrary and illegal. Skoda Auto Volkswagen India has described tax demand of more than $ 1.4 billion, or more than Rs 12,000 crore, as ‘too much’. The Custom Department had said in the notice that the company had given misleading information about its import. The company incorrectly introduced its imports of Audi, Skoda and Volkswagen cars as different parts instead of ‘fully prepared’ (CKD) units, making it to pay much low customs.
30 to 35 percent tax has to be paid on the import of CKD units
On the notice of the Customs Department, Skoda Auto Volkswagen India says that the department cannot demand tax from it after so many years. The company has been paying taxes on the import of different parts for a decade. In such a situation, it is not appropriate for the department to ask for tax payments according to the CKD unit category. After hearing the arguments of both sides, the bench said that they would decide on this issue only at this level. Let us tell you that 30 to 35 percent tax is levied on the import of CKD units from abroad, while 5 to 15 percent tax is levied for imports as different parts.
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