Wednesday, June 11, 2014

Nokia seeks stay on HC order to remit 10pc of tax amount


Chennai:

Nokia India has urged Madras High court to set aside its earlier order directing Nokia to remit 10 per cent of the total demanded tax amount.

Justice B Rajendran on April 29 has quashed the assessment order of the Enforcement Directorate (ED) directing Nokia India P Limited near Chennai to pay Rs. 2,400 crore towards TN Value Added Tax (VAT) for the assessment years 2009-10, 2010-11 and 2011-12. However, he directed Nokia to remit 10 per cent of the total demanded tax amount and to submit all documentary evidence for fresh consideration by the ED.

Acting Chief Justice Satish K Agnihotri and Justice M M Sundresh
adjourned the hearing to June 25.

Nokia in its petition has stated that the export sales are not subject
to tax on sale of goods in India and export sales can in any case not
be treated as interstate sales for levy of Central Sales Tax.
“Therefore, the question of deposit of 10 per cent of the entire tax
amount sought to be demanded does not arise at all,” Nokia stated.

It also stated that when the assessment orders have been quashed and set aside, there is no basis in law for directing the Apellant to
deposit 10 pc of the amount to be assessed.

Nokia also stated that there is no provision in the relevant statute
which contemplates deposit of an amount prior to passing of an
assessment order by the original assessing authority or as a condition precedent to passing such an order.

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