Maruti Suzuki India faces an INR 16 lakh customs notice over alleged duty evasion. The company assures no impact on its financial or operational activities.
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Allegations of Duty Evasion
Maruti Suzuki, India’s automobile giant, was handed a show cause notice from the customs department.
The notice alleges the evasion of customs duties amounting to INR 16,27,085.
As per the allegations, this evasion was due to the incorrect application of the Basic Customs Duty (BCD) concession based on the end use of the imported goods.
Details from the Regulatory Filing
In a detailed regulatory filing, Maruti Suzuki highlighted that the customs department has accused the company of not paying the correct customs duty.
The error occurred because of the wrong availment of the BCD concession, specifically relating to the end-use of goods imported from overseas suppliers.
Maruti Suzuki India Limited has claimed BCD concessions on specific items for a clearer understanding.
These items fall under serial numbers 448H, 485A, 490, 494A, 516C, and 581B of Notification No. 50/2017-Customs.
Company’s Response and Assurance
Maruti Suzuki India reassured stakeholders by confirming that they will submit a formal response to the show cause notice before the deciding authority.
As per the company’s statement, it is also important to note that this notice will not significantly affect the financial or operational activities.
The event underscores the importance of vigilance and adherence to regulatory frameworks in the automotive industry.