Customs blames VW for delay in tax evasion of $ 1.4 billion

Copyright © HT Digital Streams Limit all rights reserved. Companies Neha Joshi 4 min Read 06 Apr 2025, 06:25 PM IST The Customs Commissioner refuted the challenge of the car manufacturer until the notice and claims that the delays can be attributed exclusively to the company and not to any lack of the part of the authorities, according to an affidavit, which was not the Bombay High Court (Reuters). German Automaker, and the information was needed, the submission of the German unit did not say the authorities said in an affidavit filed with the Bombay High Court. India’s tax authorities blamed Skoda Auto Volkswagen India PVT. Ltd. for the delay in the preliminary $ 1.4bn assessment (approximately £ 11,526 crore) tax question and says that the Indian unit of the German car manufacturer did not provide the information needed. The Customs Commissioner refuted the challenge of the car manufacturer until the notice, claiming that the delays “can be” exclusively attributed to the company and not to the authorities’ part of the authorities “, according to an affidavit submitted before the High Court in Bombay. Skoda Auto approached the Supreme Court on January 29, and disputed the claim of the Customs Division for Service at the Tariff’s (CKD) rates on imported auto parts over the past 12 years. The department also issued a notice threatening to confiscate the imported goods. Also read: Volkswagen India Unit has a $ 1.4 billion notice for tax evasion for Audi, VW and Skoda Motor Parts: Report that responds to Mint’s e -mail -Question, Škoda Auto said: “We, at Škoda Auto Volkswagen India Pvt Ltd, acknowledge the continuing proceedings. “said the company that they are fully working with the authorities. The core dispute over the classification of imported parts at the core of the dispute is evident from the notices of the show causes of September and November 2024, the company’s classification of parts and components introduced for its Aurangabad factory between March 2012 and July 2024 is believed to have been classified as CKD kits. CKD classification applies when all vehicle components are entered in an unlucky condition for local meeting. The affidavit of the tax division, filed after a leadership of the Supreme Court, offered the reason for the long -term preliminary assessment period of 12 years. In anticipation of SVB investigations, the Customs Commissioner said the proceedings were extended due to the continued investigations of the Special Valuation Branch (SVB), investigating the import transactions between related parties. According to the affidavit, Skoda’s practice of importing goods and receiving services from related entities worldwide has necessitated SVB engagement. The department said that “as many as eight proceedings were pending, of which the investigation reports were completed in three cases. Two more cases, namely Volkswagen Group Sales India Ltd. and Volkswagen India Pvt. Ltd. (both are groups entities) were also pending up to ten SVB cases.” Also read: How a Volkswagen software became the center of a $ 1.4 billion tax dispute in India, the customs authorities claimed to have always sought the necessary information, data and documents from Skoda Auto, but the company did not provide it immediately. The department claimed that the car manufacturer at no point objected that the attacks were provisional in nature. “The communication they have been sent from time to time acknowledges this aspect of provision concedes the fact that documents are incomplete schedules a target date within which they will be provided, seeking an extension of the time to violate the target dates, and the unmistakable truth remains that documents or data still have to be provided today,” The department also presented documentary evidence, including a Skoda -E -mail posting indicating that the intention to finalize the pending assessments by June 2024, along with an action plan for obtaining data from foreign suppliers. “The email of Skoda indicated why the preliminary assessments were pending and that Skoda would try to close by June 2024. Skoda also gave an action plan stating that it was in the process of obtaining the costing or collection of data from the foreign supplier and SKODA in most cases, not even the details. The Directorate of Income Intelligence (DRI) revealed a significant number of agreements entered into by Volkswagen Group Sales India PVT. Ltd. (VWGSipl) and that you have taken out as many as 107 agreements entered into by IT with parental or subsidiary companies, from which 31 agreements are related to the company’s company, while only 7 agreements were submitted to the SVB, the commissioner. Also read: Skoda consignments will not be stopped more than $ 1.4 billion tax dispute: Govt to Bombay HC The Customs Division also emphasized the continuity context performed by SKODA, which covers various import diversions. The authorities pointed out that Skoda renewed this connection, even after the issuing of the show cause in September 2024, which means their acceptance of the preliminary judgments. “After initiating the proceedings of the show cause, requesters made willing and through voluntary compliance two more continuity tires of £ 2,800 crores without an IOTA of objection that the respondents should finalize the preliminary judgments, and the requesters objected to the continuity. The department further argued that Skoda presented an incomplete picture to the court by withholding relevant correspondence and documents. “It remains an undisputed fact that essential information and documents that are critically needed for the completion of SVB proceedings are only provided by the requesters in the parts, and it remains undisputed that some more information and documents still have to provide,” the affidavit states. The Customs Division requested the HC to reject Skoda’s written petition and allow the assessment process to continue. The department has also committed to appointing a judge in the rank of commissioner for notifications on show ears and at the same time completes the provisional judgments within six to eight months. Catch all the corporate news and updates on live currency. Download the Mint News app to get daily market updates and live business news. More Topics #Auto Mint Specialies