Customs Department vs. Skoda Auto Volkswagen India: A Billion-Dollar Tax Dispute

The Customs department defended a USD 1.4 billion tax demand on Skoda Auto Volkswagen India for alleged misinformation on imports. The case was heard in the Bombay High Court where the automaker challenged the notice as arbitrary. Authorities insisted that the company follow the law like other importers.

The Customs department firmly argued its case against Skoda Auto Volkswagen India in the Bombay High Court, asserting a USD 1.4 billion tax demand. The department accuses the automobile giant of misleading import information, staunchly defending its position rather than allowing the company to play the 'victim'.

During proceedings, Additional Solicitor General N Venkatraman emphasized the impartiality of the law, stating that all importers are subject to the same regulations, including a 30% duty payment, highlighting the necessity for Skoda to comply with established legal frameworks.

Despite Skoda's challenge labeling the notice 'arbitrary and illegal', the Customs department remains resolute in its stance, suggesting the automaker's misclassification of items as the root issue, and warns of potential legal repercussions for non-compliance.