Vivo Mobile India accused of Rs 2,217 crore customs duty evasion

The Directorate of Revenue Intelligence (DRI) has detected customs duty evasion of around Rs 2,217 crore by Vivo Mobile India Private Limited.

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.

A DRI official said that Vivo Mobile India Private Limited is a subsidiary of Vivo Communication Technology Co. Ltd, Guangdong, China, and is engaged in the manufacturing, assembling, wholesale trading as well as distribution of mobile handsets and accessories.

During the course of investigation, searches were conducted by DRI officers at the factory of Vivo India, which led to the unearthing 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.

"This mis-declaration resulted in wrongful availment of ineligible duty exemption benefits by Vivo India, amounting to Rs 2,217 crores. 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," the official said.

He added 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 the DRI, show cause notices demanding duty of Rs 4,403.88 crore had been issued to Oppo Mobiles India Private Limited.