Volkswagen's Legal Battle: Alleged Customs Fraud Sparks Rs 11,000 Crore Dispute

Skoda Auto Volkswagen India is embroiled in a legal tussle with tax authorities over a staggering Rs 11,000 crore customs duty fraud allegation. The company, facing a massive show cause notice for importing cars as completely knocked down units, has approached the Bombay High Court to resolve the matter.

Skoda Auto Volkswagen India has taken legal action against tax authorities over a colossal Rs 11,000 crore (approximately USD 1.4 billion) show cause notice. The notice pertains to alleged customs duty fraud linked to the import of cars as completely knocked down (CKD) units. The company has brought the case to the Bombay High Court.

The automotive giant stated it is utilizing all legal avenues available to challenge the show cause notice, emphasizing its commitment to operating responsibly and adhering to both global and local laws. Skoda Auto Volkswagen India also reiterated its dedication to full compliance with regulatory requirements and cooperation with authorities.

The allegations focus on the import of CKD units, which include popular models like Octavia, Superb, and Tiguan. The company is accused of misrepresenting these imports to evade higher import duties. The legal dispute follows Volkswagen Group India's strategic consolidation of its car businesses under Skoda Auto Volkswagen in 2019.

(With inputs from agencies.)