The Madras High court on Tuesday adjourned till April 10 hearing on Finnish major Nokia India’s petition contesting the R2,400-crore VAT claim by the Tamil Nadu commercial tax department.
When the matter came up for hearing on Tuesday, the court asked Nokia to pay at least 5% of the VAT department's claim. However, the Nokia counsel informed the court that the company was not in a position to pay up as it had already paid I-T R780 crore in four instalments in a tax-evasion case, which it was fighting in the Delhi high court concurrently. Besides, the company also admitted to a liquidity crunch.
Earlier last week, Nokia had filed petitions assailing the R2400-crore tax demand, saying it had been raised on surmise, that too without hearing the company's version or granting it an opportunity to furnish all relevant documents. However, the state government's stand was that despite being given an opportunity, Nokia failed to furnish all documents to prove exports.
Nokia said it had submitted only sample documents because the export data was voluminous."However, even without conveying that the entire documentation was required to be submitted, and without giving any further opportunity to Nokia, the deputy commissioner passed the order on February 28, 2014, in a biased manner and in undue haste," Nokia had said then.