India, Feb. 18 -- Skoda Auto Volkswagen India moved the Bombay high court on Monday seeking quashing of the show cause notice issued by the customs department, which accuses the auto giant of evading taxes worth $1.4 billion over 12 years by misrepresenting imports.

The "arbitrary tax environment" could make India a "laughing stock" for others, Volkswagen India told the division bench of justices BP Colabawalla and Firdosh P Pooniwalla, while the customs department said it has no intentions to stop any consignments of the company.

The dispute pertains to the import of auto parts by the German car maker between 2012 and 2024.

According to a 2011 notification, completely knocked down (CDK) kits, which contain all automobile components in...