Hewlett-Packard India gets stay order in $386 mn alleged duty evasion case

The case relates to an investigation by Directorate of Revenue Intelligence (DRI) in 2008,where the government agency had alleged that HPI had underpaid customs duties while importing products and spare parts into India.

In April last year,the Commissioner of Customs Bangalore had issued an order on the products show cause notice affirming certain duties and penalties against HPI and the named individuals of approximately $386 million.

When contacted,a HPI spokesperson said the firm does not agree with DRI’s investigation as well as the commissioner’s order. HP disagrees with the DRI’s position and Commissioner’s orders and has challenged the orders before CESTAT. The CESTAT has stayed the Commissioner’s orders until final disposal of the appeal,” the spokesperson said.

Prior to the issuance of the show cause notices,HP said it had deposited approximately $16 million with the DRI and agreed to post a provisional bond in exchange for the DRI’s agreement to not seize HP products and spare parts and to not interrupt business by HP in India.