Tax dispute: Notice issued to Tamil Nadu govt on Nokia petition

Written by PTI | Chennai | Updated: Mar 29 2014, 00:39am hrs
Nokia IndiaTamil Nadu govt had issued a Rs 2,400 crore notice to Nokia saying the company had been selling the products produced from Chennai plant to the domestic market.
The Madras High Court today issued a notice to the Tamil Nadu government on a petition filed by handset major Nokia, challenging the state government's notice slapping Rs 2400 crore tax dues on it.

When the matter came up before Justice B Rajendran, state Advocate General A L Somayaji opposed granting any interim order to the petitioner.

Also read: Nokia India in more trouble after Jayalalithaa-led Tamil Nadu govt slaps Rs 2,400 crore tax demand notice

The Advocate General submitted that under Section 27(4) of the VAT, there was no need to issue prior notice to the company, an issue being raised by the petitioner.

Justice Rajendran ordered notice and adjourned the hearing to April 1.

Nokia Chennai

The state government had issued a Rs 2,400 crore notice to Nokia saying the company had been selling the products produced from Chennai plant to the domestic market, instead of shipping them overseas.

Nokia management had responded to the notice, saying that it was a "baseless" claim by the Sale Tax Department.