HC says it is dissatisfied with Skoda's plea in $1.4 billion tax row

The tax notice also challenges the company's classification of components imported for its Aurangabad plant

- Neha Joshi

The Bombay High Court (HC) on Monday voiced a prima facie dissatisfaction with Skoda Auto Volkswagen India's arguments in its challenge against a $1.4 billion tax evasion notice, issued by the customs department for paying a lower tax on import of car components.

The two-judge bench led by Justice B.P. Colabawalla also praised a customs officer for his "meticulous work and research" before issuing the show-cause notice.

The bench said the car-maker would need to make a compelling case for why the plea should be entertained at this stage. "Prima facie, we are not satisfied with your argument. It is troubling us whether we should entertain the plea at the stage of the show-cause notice," the bench added.