India, Feb. 27 -- The Bombay high court on Wednesday concluded hearings in the $1.4-billion tax dispute between Volkswagen India and the customs department and clarified that it would pass orders only on the issue of limitation, i.e. whether the customs authorities failed to adhere to deadlines set by law for raising the tax demand.

"Although we have heard extensively on all the issues, we will pass orders only on the issue of limitation," the division bench of justices BP Colabawalla and Firdosh Pooniwalla said after both sides concluded their arguments.

The court also directed the customs authorities to file an affidavit by March 10, explaining why the show cause notice issued in September 2024 was not barred by limitation.

The Germa...