Carmaker Fiat India seeks review of Supreme Court order on excise duty payment
November, 02nd 2012
Carmaker Fiat India has sought review of a Supreme Court order directing it to pay about 360 crore as additional excise duty on sales of its Uno cars between 1996 and 2001.
"We have filed a review petition," said V Lakshmi Kumaran, lawyer for Italian carmaker Fiat's Indian unit, without giving further details. The court had passed the order on August 29.
The case pertains to Fiat's joint venture with Mumbai-based Premier Automobiles at the time. Fiat was importing completely-knocked-down kits of its popular Uno hatchback and selling them in the country below cost price. This prompted the tax authorities to levy the duty on the cost price of the company's Uno hatchbacks.
Fiat, however, contested the move, arguing that excise duty should be levied on the sale price, which in this case was less than the cost of production.
Premier, the other party in the case, had filed a clarification application within a month of the Supreme Court order, according to Tarun Gulati, partner in Delhi-based law firm Economic Laws Practice.