New Delhi: The Directorate of Revenue Intelligence (DRI) has charged Oppo Mobiles India of customs duty evasion and wrongful use of duty exemption benefits amounting to Rs 4,389 crore.
The DRI had carried out searches in the office buildings and homes of the key management on the Chinese smartphone company which also operates sub-brands OnePlus and Empireunearthing incriminating evidence of willful misstatement in the description of certain items imported by Oppo India for use in cell phone manufacturing, according to a PIB release.
The DRI alleged that the wrongful declaration led to the use of ineligible exemption benefits by Oppo India amounting to Rs 2,981 crore.
DRI said Oppo India’s senior management staff and domestic suppliers were questioned who accepted the allegations in their voluntary statements.
Furthermore, the investigation found that Oppo India had to add payments of royalties and license fees to various multinational companies, including those in China, related to the use of proprietary technology, brand, IPR license, etc. in the transaction value of the goods introduced in violation of Article 14 of the Customs Act.
The alleged tax evasion in the case of undeclared royalty payments is Rs 1,408 crore.
Oppo India has reportedly voluntarily deposited an amount of Rs 450 crore as partial differential customs duties paid by them.
The company has received a show cause notice demanding customs duties of Rs 4,389 crore along with a proposal for fines for Oppo India, its employees and Oppo China†