<h1>Customs Department Urges Rejection of Skoda's Plea Over $1.4B Tax Demand, Citing Misclassification and Time Limits</h1> The Customs department has urged the Bombay High Court to reject Skoda Auto Volkswagen India's plea to dismiss a USD 1.4 billion tax demand based on time limitations, warning of 'catastrophic consequences.' Customs claims Skoda misclassified car imports to pay lower duties. Skoda argues the demand is unfair, as it has paid taxes on individual parts for over a decade. The court is currently focusing on whether the tax demand is time-barred. Customs contends that Skoda's classification as individual parts rather than 'Completely Knocked Down' units led to significantly lower duties, and granting relief could set a negative precedent.