Bosch Ltd Challenges Rs 140 Crore Customs Demand on Oxygen Sensors

Bosch Ltd faces a customs demand of over Rs 140 crore due to a dispute over the classification of oxygen sensors. The company plans to appeal and engage with the Central Board of Indirect Taxes & Customs for clarification, following an order by the Principal Commissioner of Customs in New Delhi.

Bosch Ltd has announced it is contesting a demand from customs authorities that claims the company owes more than Rs 140 crore due to a reclassification of oxygen sensors. The order was issued by the Principal Commissioner of Customs at the Air Cargo Complex in New Delhi.

The issue stems from the classification of oxygen sensors, which has been altered, leading to a significant differential duty of Rs 70,41,16,516, along with additional interest and penalties amounting to Rs 70,45,59,538, thus totaling a massive demand exceeding Rs 140 crore.

Bosch Ltd has stated its intentions to file an appeal with the tribunal in Delhi, including a mandatory pre-deposit of 7.5% of the differential duty. The company is also pursuing clarification from the Central Board of Indirect Taxes & Customs regarding the classification matter.

(With inputs from agencies.)