DRI has issued show cause notice to mobile major Oppo India
The Directorate of Revenue Intelligence (DRI) has issued a show cause notice to Chinese mobile company, Oppo India, demanding Customs duty amounting to `4,389 crore.
The notice also proposes relevant penalties on Oppo India, its employees and Oppo China, under the provisions of the Customs Act, 1962. The DRI detected Customs duty evasion of around `4,389 crore during an investigation against Oppo Mobiles India Private Limited, a subsidiary company of Guangdong Oppo Mobile Telecommunications Corporation Ltd., China.
Oppo India is engaged in the business of manufacturing, assembling, wholesale trading, distribution of mobile handsets and accessories across India. Oppo India deals in various brands of mobile phones, including Oppo, OnePlus and Realme.
“During the investigation, the DRI conducted searches at the office premises of Oppo India and residences of its key management employees, which led to the recovery of incriminating evidence indicating willful mis-declaration in the description of certain items imported by Oppo India for use in the manufacture of mobile phones,” said an official statement issued by the Union Finance Ministry.
This mis-declaration resulted in wrongful advantage of ineligible duty exemption benefits by Oppo India amounting to `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,” reads the official statement.