Rajeev Suri gets gift: High Court rejects Tamil Nadu’s tax notice on Nokia

Chennai: In a relief to Finnish-handset maker Nokia, the Madras High Court today set aside the Tamil Nadu government’s Rs 2,400 crore VAT demand and directed the authorities to review the tax assessment “afresh”.

Justice B. Rajendran who allowed the petitions filed by Nokia challenging the Sales Tax department assessment for period from 2009 to 2012 and slapping notice for Rs 2,400 crore TNVAT, set aside the order and directed the company to deposit 10 per cent of the tax demand amounting Rs 240 crore within eight weeks “as a precondition to review the assessments.”

The judge also directed the deputy commissioner of Enforcement to give an opportunity to Nokia for hearing, peruse the documents and then pass orders on merits.

The Judge, while declaring the judgement said that the demand notices issued by the authorities are still valid and the effect of quashing the assessment orders will not totally take away the right of the authorities to proceed further.

TN slapped the Rs 2,400 crore tax notice accusing Nokia of evading tax, accusing the firm sold its produces in local market without exporting them.