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Maruti gets notice for duty evasion for dubious hybrid tech

Maruti Suzuki has been served a 105-page notice over dubious hybrid technology following an investigation by the DRI, Lucknow. The authorities are considering serving a second notice to the company for another case of evasion amounting to an estimated Rs. 70 crore.

Maruti Suzuki has been served a show-cause notice by the Directorate of Revenue Intelligence (DRI) and the customs authorities over the evasion of duty.

The company has allegedly avoided duty of around Rs. 71 crore over 'dubious' hybrid technology used in cars like the Ciaz, Ertiga and S-Cross. The 105-page notice for the same was served following an investigation by the DRI, Lucknow. The authorities are considering serving a second notice to the company for another case of evasion amounting to an estimated Rs. 70 crore.

In 2017, car manufacturers were given incentives by the Government of India to manufacture hybrid technology for vehicles. According to the authorities, cars with hybrid technology should use a combination of battery powered electric motor and an internal combustion engine (ICE). It should not have an idle start and stop system that uses a battery powered electric motor only. The incentives were in the form of exemption of customs duty.

Maruti faced accusations of importing a car alternator or MGU, tweaking it with the use of software and calling it a hybrid system. The company branded the same system as SHVS or smart hybrid.

Source: Times of India

 
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