DRI detects customs duty evasion of Rs 4,389 cr by Oppo India: Finance Ministry
The ministry stated that DRI conducted multiple searches at the office premises of Oppo India, as well as residences of key management employees.
- Jul 13, 2022,
- Updated Jul 13, 2022 1:27 PM IST
The Directorate of Revenue Intelligence (DRI) has detected customs duty evasion of Rs 4,389 crore by smartphone manufacturer Oppo India, said the Ministry of Finance in a statement. It added that Oppo India is a subsidiary company of Guangdong Oppo Mobile Telecommunications Corporation Ltd, China.
Oppo India is in the business of manufacturing, assembling, wholesale trading, distribution of mobile handsets and accessories, and has various brands like Oppo, OnePlus and Realme.
The ministry stated that DRI conducted multiple searches at the office premises of Oppo India, as well as residences of key management employees. These raids led to the recovery of incriminating evidence that pointed towards willful mis-declaration in the description of certain items imported by the company for the use of manufacturing of mobile phones.
This mis-declaration resulted in ineligible duty exemption benefits amounting to Rs 2,981 crore. Senior management employees and domestic suppliers of Oppo India were questioned during the course of the investigation. They voluntarily accepted the submission of wrongful description before the customs authorities.
Oppo India also remitted/made provisions for payment of ‘royalty’ and ‘licence fee’ to various MNCs, including those in China. These royalties and licence fees were not added in the transaction value of goods imported by them, in violation of Section 14 of the Customs Act, 1962. The alleged duty evasion by Oppo India on this account is Rs 1,408 crore.
A sum of Rs 450 crore has been voluntarily deposited by Oppo India, as partial differential customs duty short-paid by them, the ministry added.
A show cause notice has been issued to Oppo India demanding customs duty amounting to Rs 4,389 crore, along with proposal for relevant penalties on the company, its employees, and Oppo China, under provisions of the Customs Act, 1962, the ministry added.
Also read: Vivo remitted 50% of revenue worth Rs 62,476 cr to avoid Indian taxes: ED
Also read: Attend to Vivo's plea on frozen bank accounts: Delhi HC directs ED
The Directorate of Revenue Intelligence (DRI) has detected customs duty evasion of Rs 4,389 crore by smartphone manufacturer Oppo India, said the Ministry of Finance in a statement. It added that Oppo India is a subsidiary company of Guangdong Oppo Mobile Telecommunications Corporation Ltd, China.
Oppo India is in the business of manufacturing, assembling, wholesale trading, distribution of mobile handsets and accessories, and has various brands like Oppo, OnePlus and Realme.
The ministry stated that DRI conducted multiple searches at the office premises of Oppo India, as well as residences of key management employees. These raids led to the recovery of incriminating evidence that pointed towards willful mis-declaration in the description of certain items imported by the company for the use of manufacturing of mobile phones.
This mis-declaration resulted in ineligible duty exemption benefits amounting to Rs 2,981 crore. Senior management employees and domestic suppliers of Oppo India were questioned during the course of the investigation. They voluntarily accepted the submission of wrongful description before the customs authorities.
Oppo India also remitted/made provisions for payment of ‘royalty’ and ‘licence fee’ to various MNCs, including those in China. These royalties and licence fees were not added in the transaction value of goods imported by them, in violation of Section 14 of the Customs Act, 1962. The alleged duty evasion by Oppo India on this account is Rs 1,408 crore.
A sum of Rs 450 crore has been voluntarily deposited by Oppo India, as partial differential customs duty short-paid by them, the ministry added.
A show cause notice has been issued to Oppo India demanding customs duty amounting to Rs 4,389 crore, along with proposal for relevant penalties on the company, its employees, and Oppo China, under provisions of the Customs Act, 1962, the ministry added.
Also read: Vivo remitted 50% of revenue worth Rs 62,476 cr to avoid Indian taxes: ED
Also read: Attend to Vivo's plea on frozen bank accounts: Delhi HC directs ED