Skoda Volkswagen can't play victim, will have to fall in line on tax demand: Customs to Bombay High Court

Mumbai: Skoda Auto Volkswagen India will have to fall in line and not play "victim", the Customs department told the Bombay High Court on Thursday, justifying its $1.4 billion tax demand notice served on the firm for allegedly providing misleading information on imports.

Additional Solicitor General N Venkatraman, appearing for the Customs department before a division bench of Justices B P Colabawalla and Firdosh Pooniwalla, noted the rule of law is the same for everyone and that the authority was not in fault for issuing the tax demand notice.

"You have to follow the law. You have to fall in line. The rule of law is the same for everyone. Similar importers are already paying 30 per cent. It is not our fault for issuing this show cause notice," he said in his arguments before a division bench of Justices B P Colabawalla and Firdosh Pooniwalla.

Venkatraman maintained it was the German car maker's fault to not classify the import items properly.

"It is the company's fault for not classifying the items properly. Don't be the victim here. If you don't follow the law then we will initiate action in accordance with the provisions of law," the Additional Solicitor General asserted.

The division bench was hearing a petition filed by the automaker last month, in which it challenged the notice, terming it as "arbitrary and illegal".