Bombay High Court Questions Skoda Volkswagen on Customs Evasion Claims

The Bombay High Court expressed dissatisfaction with Skoda Volkswagen's arguments against a USD 1.4 billion Customs notice, alleging misclassification of imports. The HC praised the Customs officer's thorough research. The case continues as Skoda claims the tax demand is exorbitant and unjust.

The Bombay High Court on Monday expressed dissatisfaction with Skoda Auto Volkswagen India's defense against a substantial USD 1.4 billion notice issued by the Customs department.

The Court, while praising a Customs officer for meticulous research, noted potential misclassification of imported car parts which led to paying lower duties.

The ongoing case questions whether Skoda Volkswagen's classification aligns with India's tax regulations, with Skoda arguing that the tax demand is exorbitant.

(With inputs from agencies.)