Tamil Nadu government files fresh appeal in Nokia case

CHENNAI: The Tamil Nadu government has filed an appeal in the Madras High Court against a single judge order passed in April which had asked Nokia India to deposit 10% of the state's tax claim of Rs 2,400 crore within eight weeks and directed the Commercial Tax department to reconsider the claim on the company.

Earlier, the Tamil Nadu government had alleged that Nokia India had avoided paying taxes by masking domestic sales as exports for three financial years beginning 2009-10. Nokia India, which operates out of a special economic zone, enjoys certain tax exemption benefits for exporting mobile phone handsets while attracting tax for those sold within India.

About a week ago, Nokia India had filed a writ appeal in the High Court, requesting it to set aside a part of the April order of depositing 10% of the tax claim. Nokia's argument is that when the assessment orders have been set aside, there is no basis in asking the company to deposit the amount.

Both the appeals will come up for hearing on the 25th of this month.