Government handed over a tax notice of Rs 120 billion to this car company, brand sucked the case

Last update:03 February, 2025, 11:57 IST

Foxwagen has registered a case against the Government of India against a tax notice of Rs 120 billion in the Bombay High Court. The company claims that this tax demand is excessive and does not match the import tax rules.

New Delhi. Germany’s giant automobile manufacturer Foxwagen has filed a case against the Government of India. A tax company of $ 1.4 billion i.e. about 120 billion rupees has been imposed on the company by the Government of India. The company has filed a case against this in the Bombay High Court. The company believes that this tax demand made by the government is very high and also does not match India’s import tax rules. The company believes that the government’s demand for heavy tax demand for the company will also have 130 billion investment in India.

What is the matter?
In fact, in September 2024, a tax notice of Rs 120 billion was sent by the Government of India to Foxwagen Company. On this, the Government of India argues that the company imported cars into several parts to save tax and imported it to the market of India. According to the rules, the government collects a tax of 30-35 % on the CKD units not fully assembled. At the same time, the import of parts associated with it is taxed at 5 to 15 %. The company showed its imports as individual parts and paid only 5 to 15 percent loan.

What will happen next in the case?
The hearing of this case between Foxwagen and the government will start on the 5th of February. If the company loses this case filed in the Bombay High Court, then the company may have to pay a fine of up to Rs 242 billion. At the same time, the company believes that the government’s notice is against the Ease of Business Policy of foreign companies in India and can reduce the trust of foreign companies.