Skoda Auto Volkswagen India's $1.4 Billion Customs Clash

Skoda Auto Volkswagen India is contesting a $1.4 billion tax demand notice from the Customs department, which accused the company of providing misleading import information. Hearing the case, the court emphasized the need to adhere to the rule of law, with the authority defending the demand notice's legitimacy.

In a high-stakes legal battle, Skoda Auto Volkswagen India is facing a $1.4 billion demand from the Customs department. The automotive giant is being accused of misleading information on imports, prompting a contentious tax demand notice.

Appearing before the Bombay High Court's division bench, Additional Solicitor General N Venkatraman argued that the rule of law is unwavering and applicable to all. He defended the department's action, stating that Skoda failed to adhere to proper classification norms necessary for the imports.

The ongoing legal proceedings have seen Skoda challenge the notice as 'arbitrary and illegal,' while the government maintains it is a justified and necessary enforcement of the law. As similar importers abide by the regulations, the case underscores the importance of compliance in international trade.

(With inputs from agencies.)