Skoda Auto Volkswagen India reaches Bombay High Court against show cause notice, know the whole matter

Skoda Auto Custom Notice: Customs officials have accused Skoda Auto Volkswagen India of giving wrong information about the import of cars and taking undue advantage of the exemption in customs duty. According to the allegation, this fraud was done with those cars that were brought to India as completely knocked down (CKD) units.

Mon, 03 Feb 2025 11:12 PM (IST)
Skoda Auto Volkswagen India reaches Bombay High Court against show cause notice, know the whole matter
Skoda Auto Volkswagen India reaches Bombay High Court against show cause notice, know the whole matter

Skoda Auto Volkswagen India approached the Bombay High Court in a case of customs duty fraud worth about Rs 11,000 crore ( $ 1.4 billion). It is suspected to have manipulated the car's importation in CKD (completely knocked down) form and in such a way, tried to evade customs duty.

According to PTI, when Skoda Auto Volkswagen India was asked for a response on this matter, the company said that it was using all legally available remedies and would take appropriate action against this notice.

The company said in a statement, "Skoda Auto Volkswagen India is committed to acting as a responsible organization and fully complies with all global and local laws."

Customs officials have accused Skoda Auto Volkswagen India of providing incorrect information about the import of cars and taking undue advantage of the exemption in customs duty. According to the allegation, this fraud was done regarding the cars that were brought to India as completely knocked down (CKD) units.

Brands like Audi, VW, and Skoda come under the Volkswagen Group, which imports cars as CKD and assembles them in India. These include cars like Octavia, Superb, Kodiaq, Passat, Jetta, and Tiguan.

It is alleged that the company saved customs duty by importing car parts as separate units, whereas according to the rules, higher import duty is applicable on CKD units.

In 2019, Volkswagen Group India received approval to merge its three passenger car subsidiaries into Skoda Auto Volkswagen India. The move was aimed at better coordination and increasing the share of Skoda and Volkswagen in the Indian market by 2025.

Apart from this, in July 2018, Volkswagen Group announced an investment of 1 billion euros under the India 2.0 project.

Muskan Kumawat Muskan Kumawat is a Journalist & Content Writer at Sangri Times English, covering a wide range of topics, including news, entertainment, and trending stories. With a strong passion for storytelling and in-depth reporting, she delivers engaging and informative content to readers.