The DRI in its 2020 notice claimed that the company had falsely declared imported kits of electric scooters as components to evade customs duty. The parts in the kits, when put together, made a complete electric scooter, which attract a higher rate of duty than components, it had said, and claimed that the company caused a ₹311 crore loss to the government.
In its plea before the HC, the electric scooter maker claimed that several sections of the Finance Act, 2022 were arbitrary, unreasonable and violative of articles of the Constitution on equality before law and freedom to practise any profession, or to carry on any occupation, trade or business, the defects pointed out by the Hon’ble Supreme Court in the judgement of Canon India (supra) have still not been cured, hence making the validating Act null and void.
Moreover, the impugned provisions confer concurrent jurisdiction on multiple officers in respect of same subject matter which would result in chaos, anarchy, harassment of assesses, contradictory and conflicting decisions,” according to the plea, seen by ET.
Hero Electric did not respond to ET’s request for comment till press time Monday.
