Maruti Suzuki SHVS receives Rs 711 crore tax evasion notice on light hybrid technology

Customs officials from the Revenue Intelligence Department (DRI) and Smart Hybrid Technology have issued a notice to Maruti Suzuki for Rs 711 crore. In the final stages of the investigation in 2019, officials claimed that Maruti Suzuki’s light hybrid system was not suitable for the low tariffs that hybrids were paying.

This is related to the 2017 rules that specify tariff exemptions for technology used to manufacture hybrid cars. These vehicles were defined as driving vehicles in conjunction with battery-electric motors and internal combustion engines.

The companies claim that the alternative-generator used in Maruti Suzuki’s previous SHVS technology may not qualify under this category, as it only provides start-stop functionality while standing. It is not yet known whether the second generation SAVVSTO supplied with the 1.5-liter petrol engine is controversial, Maruti Suzuki said that these units also offer torque-fill and brake power recovery.

Following the software tweet, authorities accused Maruti Suzuki of claiming a profit on a common alternative import and declaring it a component of a hybrid car. The company is facing another notice for an additional Rs 1,000 crore, though no formal notice has been issued. SHVS Tech has been installed in vehicles like Maruti Suzuki Siaz, Ertiga, XL6, S-Cross and Betara Braser.

Newsletter Updates

Enter your email address below to subscribe to our newsletter

Leave a Reply