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In a recent regulatory filing on Monday, Maruti Suzuki, one of India's leading automobile manufacturers, revealed that it has received a show cause notice from the customs department amounting to ₹16,27,085.
The notice accuses the company of evading customs duty by incorrectly availing the Basic Customs Duty (BCD) concession, based on the purported end use of imported goods from foreign suppliers.
This development adds to the growing list of challenges that Maruti Suzuki has encountered in recent weeks. The show cause notice, dated October 9, 2023, comes on the heels of an income tax notice and another show cause notice from the Goods & Services Tax (GST) Authority.
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On September 29, the GST Authority served Maruti Suzuki with a show cause notice demanding a pending tax payment of ₹193.3 crore. Subsequently, the automaker received an income tax draft assessment order of ₹2,159.7 crore on October 3, pertaining to the financial year 2019-2020.
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Despite these legal proceedings, Maruti Suzuki has maintained that its financial, operational, and overall activities remain unaffected. The company intends to respond to the show cause notice from the customs department before the adjudicating authority.
These legal challenges underscore the complexities faced by major corporations operating in India's dynamic regulatory landscape, and Maruti Suzuki will continue to navigate them as it strives to maintain its prominent position in the country's automotive industry.
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