MUMBAI: Customs Excise and Service Tax Appellate Tribunal has imposed a Rs 97.15 crore fine on car manufacturer Skoda India for duty evasion. The tribunal has also imposed a fine of Rs 1crore on its former managing director ImranHassen and Rs 25 lakh on Lukas Folc, who took over from Hassen, and Rs 5 lakh on former senior manager ( finance) Sunil Rekhi. The company will have to pay Rs 97.15 crore as duty along with interest.
Skoda India had paid $45 million (around 270 crore) to its parent firm Skoda Auto A.S Czech Republic for transfer of technology for manufacturing of Skoda brand cars in India during October 2001 to July 2007. Nhava Sheva customs said that the amount paid should be included in the assessable value applicable to each imported car kit. The company said that their only obligation was to disclose about the lump sum payment made to the overseas supplier.
Customs issued a show-cause notice saying the company did not declare the value thus evading duty. The adjudicating authority agreed with the findings of the department. The company then moved the tribunal against the order.
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