Bajaj Auto Faces Over ₹34 Crore GST Demand and Customs Duty Penalty in Battery Import Case

The Customs Department alleges that the company classified battery imports in the wrong tax category, resulting in the demand for additional duty and penalties.

In its regulatory filing, the company clarified that the classification of battery imports was correct, the duty benefits under the notification were justified, the order is appealable, and the company is in the process of filing an appeal.

Bajaj Auto also stated that the order will not have any major financial impact on its operations. This indicates that the company expects the matter to be resolved without impacting production or sales.

In addition to the customs dispute, Bajaj Auto has also received an order from the Deputy Commissioner of Rudrapur for ₹34.73 crore in GST and a penalty of ₹3.47 crore. The dispute in this case concerns the tax classification of spare parts sold by the company.

Tax officials argue that since Bajaj Auto is a vehicle manufacturer, its spare parts are customized for automobile use. Therefore, they should be taxed under the category of automobile parts, which falls under the higher GST rate.

This reclassification is the basis for the large GST claim. Bajaj Auto has not yet commented on the possibility of appealing this order. However, companies typically appeal in such cases when there is a dispute over interpretation.