TaxTMI 
TaxTMI 
HC bench releases Skoda Volkswagen USD 1.4 billion tax case sans verdict; matter to be heard afresh
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....C bench releases Skoda Volkswagen USD 1.4 billion tax case sans verdict; matter to be heard afresh<BR>Customs & Trade<BR>Dated:- 25-8-2026<BR>PTI<BR>Mumbai, Aug 25 (PTI) Carmaker Skoda Auto Volkswagen India will have to re-argue its petition in connection with a tax demand of USD 1.4 billion after a bench of the Bombay High Court released the matter without pronouncing its verdict. A bench of J....
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....ustices B P Colabawalla and Firdosh Pooniwalla had reserved the matter for judgment in April 2025, but did not pronounce the verdict till date. On Tuesday, the bench said it was releasing the automobile company's petition from its court as it could not adhere to the timeline set by the Supreme Court to pronounce verdicts once reserved. "Due to the exigency of work we have not been able to pr....
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....onounce judgment till date. We release the above matter (related to Skoda Auto), and which shall now be placed for hearing before the regular Bench as per the roaster hearing Writ Petitions arising from indirect taxes," the HC said. It ordered for a status quo to be maintained for a period of four weeks. The German automotive manufacturing giant, led in the country by Skoda Auto Volkswagen I....
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....ndia, has been accused of deliberately misleading customs authorities through its mode of import of parts as individual units rather than as a component of a 'completely knocked down' unit, which attracts higher import duty. The CKD (completely knocked down) units attract a 30-35 per cent duty, but Volkswagen declared its imports as separate components in different shipments and paid only 5-15 ....
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....per cent in duties, as per Customs department. According to authorities, imports of various unassembled parts of cars should have been declared as CKD units. Instead, the automaker paid a duty of only 5 to 15 per cent by choosing to declare its imports as individual components arriving in separate shipments. The automobile company has challenged the USD 1.4 billion tax demand made by the Cus....
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....toms department. PTI SP RSY =============<BR> News - Press release - PIB....