Volkswagen sues Indian tax authorities over $1.4 billion demand

Volkswagen's unit,

Skoda Auto Volkswagen India, also told the court that the tax dispute puts at risk its investments of $1.5 billion in India.

German car maker Volkswagen has moved the Bombay high court against Indian tax authorities seeking dismissal of "impossibly enormous" tax demand of $1.4 billion.

The company has reportedly argued that the tax demand is contradictory to the government's import taxation rules for car parts and will hamper the company's business plans in India, reported Reuters.