According to a Finance Ministry statement issued on Wednesday, Vivo India, a subsidiary of China-based Vivo Communication Technology, was found to have evaded customs duties to the tune of almost Rs 2,217 crore.
The company is engaged in the making, assembling, wholesale trade, and distribution of mobile handsets and their related accessories.
Searches carried out by DRI officers at the Vivo India facility throughout the investigation resulted in the collection of damning evidence indicating willful misdeclaration in the description of some items imported by it for use in the production of mobile phones.
Vivo India wrongfully claimed duty exemption benefits worth Rs 2,217 crores as a result of this false statement, according to the statement. Following the investigation, Vivo India was given a show-cause notice under the provisions of the 1962 Customs Act, which demanded payment of customs duties of Rs. 2,217 crores.
Vivo India has so far voluntarily contributed Rs 60 crores to the payment of their differential duty liability.
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