Comments
Hyundai Motor India Ltd (HMIL), the largest domestic car exporter, has been slapped a show cause notice by the Government’s Department of Revenue Intelligence (DRI) for alleged mis-declaration of the value of auto components imported by it. The disputed value is in the tune of Rs 266 crore.
However, in an official statement on Sunday, the Korean carmaker denied any wrong doing in its part and said that it will seek legal remedy on the matter.
The company has a 6.7 lakh unit per annum capacity plant near Chennai and utilises the port in the same city for both imports and exports. Many components used in the manufacture of cars are imported from overseas by both HMIL and associate firm, Mobis India.
“HMIL totally denies the allegations … The show cause notice served on HMIL by the DRI will be challenged by HMIL under the due process of law in the appropriate forum. HMIL imports all the components based on transaction value and the relevant duty has been paid to the appropriate authorities with full documentation,” said the statement.
“The disputed value of Rs 266 crore, represents 2 per cent of the total import value of approximately Rs 14,000 crore in the last five years.”
Based out of New Delhi, DRI operates under the Central Board of Excise and Customs in the Ministry of Finance, Department of Revenue. DRI’s mandate is collection of intelligence and its analysis on matters relating to violations of customs laws and anti-narcotics law.
HMIL, which is also the second largest domestic carmaker, avails the ‘Accredited Client Programme’ facility from the Government, which gives it several privileges such as fast-tracking of imports at the holding area and with fewer checks. The ACP status could also be in trouble if DRI’s allegations come through, a media report said.
This benefit is given to companies which have at least Rs 10 crore worth of imports in the previous fiscal, or have paid over Rs 1 crore customs duty in the same period.
Since operations started in 1998, the company has paid over Rs 26,800 crore in central and state taxes. It has exported to over 140 countries and has earned over $8.5 billion in export revenue over the past ten years.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.