VW Delayed $1.4 Billion Tax Case: Customs

India's tax authorities have blamed Skoda Auto Volkswagen India Pvt. Ltd for the delay in its provisional assessment of $1.4 billion (about *11,526 crore) tax demand, saying the Indian unit of the German automaker did not provide information promptly.

- Neha Joshi

The customs commissioner rejected the automaker's challenge to the tax notice, asserting that the delays were "solely attributable to the company and not to any inaction on the part of the authorities," according to an affidavit filed before the Bombay High Court. Mint has reviewed a copy.

Skoda Auto approached the high court on 29 January, contesting the customs department's demand for duty at the Completely Knocked Down (CKD) rates on imported car components over the past 12 years. The department has also issued a notice threatening to confiscate the imported goods.