The country’s largest carmaker Maruti Suzuki has been given notice by the Revenue Intelligence Directorate (DRI) and customs officials. Maruti Suzuki is accused of failing to pay around Rs 71 crore on the SHVS hybrid technology used in some of its models, the Siaz Sedan, the Ertiga MPV and the S-Cross SUV.
A 105-page show cause notice on the SHVS hybrid technology has been issued following a DRI investigation in Lucknow. Government officials are planning to give Maruti Suzuki another notice in the case, alleging that the company missed a duty of about Rs 70 crore.
What’s the matter:
Explain that in 2017, the Government of India encouraged Maruti Suzuki to exempt custom duty on technology used in the manufacture of hybrid technology-equipped cars. The company uses a battery-powered electric motor and internal combustion engine (ICE) in these models, it said.
In 2019, a duty-avoidance case came to light when DRI Lucknow learned that Maruti Suzuki is using Motor Generator Unit (MGU) or Alternator technology in vehicles equipped with its Smart Hybrid Vehicle From Suzuki (SHVS) technology. Let me tell you, this is not a completely hybrid technology.
Currently, Maruti Suzuki is using this SHVS technology in its 6 models including Ertiga, Ciaz, S-Cross, Baleno, XL6 and Vitara Brezza. The company sells about 35,000 units each month. For the first time, the company used this hybrid technology in the Siaz Sedan, released in 2015, and later on in other models. In 2017, Maruti Suzuki has announced the sale of more than 1 lakh SHVS technology vehicles, which is expected to reach 5 lakh by 2021.
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