New Delhi, Feb. 17 -- The Union government told the Bombay High Court on Monday that no consignment belonging to Skoda Auto Volkswagen India Pvt. Ltd had been stopped or will be stopped over an import tax demand of $1.4 billion, which the carmaker has disputed.

The carmaker had approached the HC after the government demanded customs duty at CKD (completely knocked down) rates on items imported over the past 12 years. CKD implies importing all components of a car in an unassembled state, which can then be put together to get a functional vehicle.

The company's counsel Arvind Datar told the court that the urgency for hearing this petition was that the company's consignment had been stopped by the customs authorities at the port where the ...