**Bosch Ltd Faces ₹140 Crore Demand from Indian Customs for Oxygen Sensors**
Bosch Ltd, a prominent auto component manufacturer, announced on August 7 that it has received a demand exceeding ₹140 crore from the Indian customs authority. This demand pertains to differential duty on oxygen sensors, which has arisen from a recent order issued by the Principal Commissioner of Customs (Import) at the Air Cargo Complex in New Delhi.
The customs order involves a reclassification of oxygen sensors, leading to a differential duty of ₹70,41,16,516, along with an interest and penalty amounting to ₹70,45,59,538. This brings the total demand to ₹1,40,86,76,054, excluding interest. In response, Bosch has indicated its intention to appeal the decision before the tribunal in Delhi, which will require a mandatory pre-deposit of 7.5% on the demanded differential duty. The company is also engaging with the Central Board of Indirect Taxes & Customs to seek clarification on the classification issue concerning oxygen sensors.
Earlier this week, Bosch reported a significant increase in its consolidated net profit, which more than doubled to ₹1,115 crore for the first quarter ending June 30, 2025, compared to ₹465 crore during the same period last year. The company’s total income rose to ₹5,077 crore in the June quarter, up from ₹4,496 crore in the previous year. During this quarter, Bosch completed the transfer of its “Video solutions, Access and Intrusions and Communication systems” business, resulting in a profit of ₹556 crore from the sale.
Guruprasad Mudlapur, Managing Director of Bosch Ltd, commented on the company’s performance, attributing the strong growth to increased revenue, heightened demand in the passenger car segment, and a reduction in material costs due to a favorable product mix. He expressed optimism about future opportunities despite ongoing global challenges, highlighting the company’s strategic investments in hydrogen, electrification, and digital services to lead in sustainable mobility.
**FAQ**
**What is the reason behind Bosch Ltd’s ₹140 crore demand from customs?**
The demand is due to a reclassification of oxygen sensors, resulting in differential duty, interest, and penalties imposed by the Indian customs authority.
