Press Release Regarding Show Cause Notice to the extent
May, 03rd 2010
Regarding Show Cause Notice to the extent of Rs. 1450 Crores, for evasion of Customs Duty, to M/s Hewlett Packard India Sales Pvt. Ld., (HPISPL) by DRI, Bangalore Unit
The Directorate of Revenue Intelligence, (DRI) Bangalore Zonal Unit has recently issued a Show Cause Notice to the extent of Rs. 1450 Crores, for evasion of Customs Duty, to M/s Hewlett Packard India Sales Pvt. Ld., (HPISPL) ( a 100% subsidiary of Hewlett Packard Company, US), for undervaluing their imported products and spares (Computers Laptops/Notebooks/Desktops, spares etc.), supplied by their overseas HP entities.
HPISPL did not make proper and full disclosure about the pricing mechanism of the imported products to the Customs resulting in payment of less Customs duty than what was actually payable under Customs Law. Based on the extensive investigation carried out by DRI stretching over a period of time, the above case was detected leading to the issue of the Show Cause Notice.
Since HPISPL were enjoying Accredited Client Programme (ACP) status , wherein they had the green channel facility for faster clearance of imported goods without the routine Customs checks & scrutiny, undervaluation of imported products from their overseas HP entities could not be detected in the normal course.
During the course of investigation, HPISPL have voluntarily pre-deposited an amount of Rs. 79.25 crores.