<h1>Skoda Auto Volkswagen India Challenges $1.4B Tax Demand Over Import Classification Dispute with Customs Department</h1> The Bombay High Court is hearing a case where the Customs department has issued a USD 1.4 billion tax demand to Skoda Auto Volkswagen India for allegedly misclassifying its imports to pay lower duties. The Customs claims the company declared imports as individual parts instead of 'Completely Knocked Down' (CKD) units, which would attract higher duties. The company argues the demand is exorbitant and challenges the reclassification of its imports. The Customs department insists on adherence to the law, stating similar importers pay higher duties, and asserts that Volkswagen must comply with the tax demand. The court proceedings are ongoing.