Revenue Intelligence Detects Customs Duty Evasion Of Rs 2,217 Crore By Vivo India, Issues Show Cause Notice

Chinese smartphone maker Vivo's India unit has been accused of customs duty evasion of over Rs 2,200 crore by the Directorate of Revenue Intelligence (DRI).

The agency in a statement on Wednesday (3 August) said that during an investigation pertaining to Vivo India, it has detected customs duty evasion of around Rs 2,217 crore.

Vivo India is a subsidiary company of China's Guangdong based Vivo Communication Technology, and is engaged in the business of manufacturing, assembling, wholesale trading as well as distribution of mobile handsets and accessories, the agency said.

"During the course of investigation, searches were conducted by DRI officers at the factory premises of Vivo India, which led to the recovery of incriminating evidence indicating wilful mis-declaration in the description of certain items imported by Vivo India, for use in the manufacture of mobile phones," the DRI said.

"This mis-declaration resulted in wrongful availment of ineligible duty exemption benefits by Vivo India, amounting to Rs 2,217 crore. After completion of the investigation, a show cause notice has been issued to Vivo India demanding Customs duty amounting to Rs 2,217 crore, under the provisions of the Customs Act, 1962," it added.

The agency said that a sum of Rs 60 crore has been voluntarily deposited by Vivo India, towards "discharge of their differential duty liability".

Recently, in another set of investigations conducted by DRI, show cause notices demanding duty of Rs 4,403.88 crore have been issued to Oppo Mobiles India Private Limited, the India unit of Chinese smartphone maker Oppo.