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Nokia files writ appeal against HC’s April order

Nokia India on Wednesday filed a writ appeal in the Madras high court, requesting it to set aside part of the single judge order which asked the company to deposit 10 per cent of the Tamil Nadu Commercial Tax Department’s claim of Rs 2,404 crore.

The order was passed on April 29, 2014 by judge B Rajendran, who had asked the department to hear the matter afresh and give an opportunity of personal hearing to the company. The court gave eight weeks time to the company to deposit the money.

Now, the company has filed a writ appeal against the order on the grounds that once the assessment orders are quashed and set aside, there is no basis in law for directing the company to deposit. The company is said to be moving against that part of the order.

Nokia’s spokesperson confirmed the development. “Nokia confirms that we have lodged this appeal as we earlier said we would,” he said.

Tuesday’s writ appeal is the latest in a series of developments regarding a dispute between Nokia India and the Tamil Nadu Commercial Tax Department, which had slammed a Rs 2,404 crore notice against the company.

The Tamil Nadu tax authorities had issued a notice for Rs 2,400 crore, alleging that the company sold mobile phones meant for exports in the domestic market and they need to pay Value Added Tax for three fiscals including 2009-10, 2010-11 and 2011-12.

THE ISSUE

* The Tamil Nadu tax authorities had issued a notice for Rs 2,400 crore, alleging that the company sold mobile phones meant for exports in the domestic market and they need to pay VAT for three fiscals

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