The country's second largest car maker Hyundai Motor India today said it is considering to take legal steps against the Rs 266-crore tax evasion notice issued by the Directorate of Revenue Intelligence (DRI).

"Our legal team is in the process of preparing an appropriate response to the show cause notice substantiating our legally compliant methods of conducting business in India," Hyundai Motor India Ltd (HMIL) Senior Vice-President (Finance and Corporate Affairs) R Sethuraman told PTI.

The show cause notice served on HMIL by the DRI will be challenged by HMIL under the due process of law in the appropriate forum, the company said.

Last week, the DRI had issued a showcause notice HMIL for allegedly evading tax to the tune of Rs 266 crore in the last five years.

"We have issued a showcause notice to Hyundai for evading tax to the tune of Rs 266 crore between July 2005 and December 2010...," DRI Additional Director General C Rajan had said.

The company has been given a month's time to respond, failing which further action is likely to be taken.

HMIL refuted allegations of resorting to mis-declaration of the value of components imported by it for manufacture of cars or having suppressed information of the same and claimed it followed all the statutory norms laid down under the law.

"HMIL imports all the components based on transaction value and the relevant duty has been paid to the appropriate authorities with full documentation. Therefore any allegation that HMIL is resorting to mis- declaration is false, baseless and unfounded," HMIL said.

It further said it has filed every single invoice, agreement(s) and bill of entry with the customs department as per prescribed procedures and hence there is no scope for suppression of any kind.

"The disputed value of Rs 266 crore, represents two per cent of the total import value of approximately Rs 14,000 crore in the last five years," the company said.

Established in 1998, HMIL has paid over Rs 26,800 crore in central and state taxes so far, the company claimed. (PTI)