Wed Feb 05 08:19:29 UTC 2025: ## Volkswagen India Faces $1.4 Billion Tax Dispute in Bombay High Court
**Mumbai, February 5, 2025** – Skoda Auto Volkswagen India is challenging a $1.4 billion tax demand from Indian customs authorities in the Bombay High Court. The court has scheduled a hearing for February 17th.
The customs authorities allege that the Volkswagen group, which includes Audi, Skoda, and Volkswagen brands, deliberately misclassified imported car parts. Instead of declaring them as “completely knocked down” (CKD) units, which attract a 30-35% import duty, the company allegedly declared them as individual components, paying only 5-15% duty. This allegedly involved misrepresenting imports for models such as the Octavia, Superb, Kodiaq, Passat, Jetta, and Tiguan.
Volkswagen filed a petition last month challenging a show-cause notice issued in September 2024. The company’s lawyers argued for an urgent hearing on Wednesday, which the High Court granted. The case highlights potential large-scale import duty evasion by the automotive giant. This development comes after the Volkswagen Group merged its three Indian passenger car subsidiaries into Skoda Auto Volkswagen India in 2019, aiming to increase market share. In 2018, the group announced a €1 billion investment in its “India 2.0” project.
First Piper 