New Delhi, Aug 3 (Representative) The Directorate of Revenue Intelligence (DRI) has detected customs duty evasion of Rs 2,217 crore by the Indian subsidiary of Chinese mobile phone maker Vivo, a Finance Ministry statement said on Wednesday. Vivo India is a subsidiary company of Vivo Communication Technology Co Ltd., Guangdong, China, and is engaged in the business of manufacturing, assembling, wholesale trading as well as distribution of mobile handsets and accessories. During investigation, searches were conducted by DRI officers at the factory premises of Vivo India, which led to the recovery of alleged incriminating evidence indicating wilful wrong declaration in the description of certain items imported by Vivo India, for use in the manufacture of mobile phones.’
This 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,” the statement said.A sum of Rs 60 crore has been voluntarily deposited by Vivo India towards discharge of their differential duty liability, the statement said.It also mentioned that recently, in another set of investigations conducted by DRI, show cause notices demanding duty of Rs 4,403.88 crore were issued to Oppo Mobiles India Pvt Ltd.