In response to the order, the corporate is accused of misclassifying objects underneath completely different HSN codes, leading to a discrepancy in tax funds. As a consequence, the corporate has been instructed to pay a sum of INR 27.87 lakh protecting variations in tax quantities, fines, and penalties.
The corporate has revealed its intention to attraction this choice earlier than the Workplace of Commissioner (Appeals). Regardless of the upcoming authorized proceedings, the corporate has assured stakeholders that the monetary, operational, and general actions of the corporate aren’t anticipated to be considerably impacted by this order.
Just lately Maruti Suzuki India was underneath scrutiny by the Directorate of Income Intelligence (DRI) for utilizing the improper Harmonized System of Nomenclature (HSN) code for an imported element. The corporate revealed in a regulatory submitting that it obtained a communication from the DRI’s Hyderabad Zonal Unit on February 20, 2024.
In response to the DRI inquiry, Maruti Suzuki imported the ‘Shaft Assy Propeller’ underneath an incorrect HSN code, as per the World Customs Organisation’s explanatory notes. The investigation additionally discovered that Built-in Items and Providers Tax (IGST) had been paid on sure car components at a fee of 18%, whereas the right fee ought to have been 28%.
