The Ministry of Finance on July 13 said it has slapped a notice on Chinese mobile maker Oppo, as Directorate of Revenue Intelligence (DRI) has detected Customs duty evasion of Rs 4,389 crore against the company. “After completion of the investigation, a show-cause notice has been issued to Oppo India, demanding Customs duty amounting to Rs 4,389 crore. The said notice also proposes relevant penalties on Oppo India, its employees and Oppo China, under the provisions of the Customs Act, 1962,” the ministry said.

It further said, during an investigation of Oppo Mobiles India Pvt Ltd, a subsidiary of Guangdong Oppo Mobile Telecommunications Corporation Ltd, the DRI has detected Customs duty evasion of Rs 4,389 crore. Searches were conducted by the DRI on the office premises of Oppo India and residences of its key officials, which led to the recovery of “incriminating evidence, indicating wilful misdeclaration in the description of certain items imported for use in the manufacture of mobile phones,” the Ministry of Finance said, adding: “This misdeclaration resulted in wrongful availment of ineligible duty exemption benefits by Oppo India amounting to Rs 2,981 crore.”

Among others, senior management employees and domestic suppliers of Oppo India were questioned, who in their voluntary statements accepted the submission of wrongful description before the Customs authorities at the time of import, it added.          Source: TNS