The Skoda Volkswagen brand has been told by the court that it cannot “play the victim card” over a tax notice issued by the Indian Central Board of Indirect Taxes and Customs (CBIC). The notice was issued in 2020, seeking to recover over Rs 3,600 crore in GST and Customs duty from the company.
The court’s observation came as the carmaker had claimed that it was facing “hostile” treatment from the board, and that the tax notice was a result of “biased” assessments by the CBIC. However, the court was not convinced by these claims, stating that the company was not a “victim” in the matter.
The court’s decision is seen as a significant setback for the company, which had been resisting the tax notice for over a year. The company had claimed that the notice was the result of a “misguided” perception by the CBIC, and that it had been mistreated by the tax authorities.
However, the court was not convinced by these claims, and instead noted that the tax notice was based on “reasonable” grounds. The court also observed that the company had failed to provide any “credible” evidence to support its claims of biased treatment.
The court’s decision is significant not just for Skoda Volkswagen, but also for other companies that may be facing similar tax notices. The ruling sets a precedent that companies cannot unilaterally claim to be “victims” without providing sufficient evidence to support their claims.
In its order, the court noted that the company had been subjected to rigorous audit and investigation, and that the tax notices were issued after “meticulous” scrutiny of the company’s affairs. The court also observed that the company had failed to provide any “credible” evidence to support its claims of biased treatment, and that it was not a “victim” in the matter.
The court’s decision is seen as a significant victory for the CBIC, which has been accused of being overly aggressive in its tax collection efforts in recent years. The ruling is also a setback for companies like Skoda Volkswagen, which had been trying to fight tax notices by claiming to be “victims” of biased assessments.