Skoda Volkswagen can’t play victim, will have to fall in line on tax demand: Customs to Bombay HC

Skoda Auto Volkswagen India faces $1.4 billion tax demand for allegedly misclassifying imports, customs department warns legal action.

Skoda Auto Volkswagen India will have to “fall in line and not play victim,” the Customs department told the Bombay High Court on Thursday (February 20, 2025), justifying its tax demand notice of $1.4 billion to the company for allegedly providing misleading information about its imports.

Additional Solicitor General (ASG) N. Venkatraman, appearing for the customs department, said the rule of law is the same for everyone.

“You have to follow the law. You have to fall in line. The rule of law is the same for everyone. Similar importers are already paying 30%,” he said.

The customs department was not at fault for sending the show-cause notice but “it is the company’s fault for not classifying the items properly,” the ASG added.

“Don’t be the victim here. If you don’t follow the law then we will initiate action in accordance with the provisions of law,” Mr. Venkatraman said.

A division bench of Justices B. P. Colabawalla and Firdosh Pooniwalla was hearing a petition filed by the company, challenging the tax demand notice by terming it as “arbitrary and illegal”.

The company said the over ₹12,000 crore demand was “exorbitant”.