Chennai: The Madras High Court on Friday issued a notice to the Tamil Nadu government on a petition filed by handset major Nokia, challenging the state government's notice slapping Rs 2400 crore tax dues on it.
When the matter came up before Justice B Rajendran, state Advocate General A L Somayaji opposed granting any interim order to the petitioner.
The Advocate General submitted that under Section 27(4) of the VAT, there was no need to issue prior notice to the company, an issue being raised by the petitioner.
Justice Rajendran ordered notice and adjourned the hearing to April one.
The state government had issued a Rs 2,400 crore notice to Nokia saying the company had been selling the products produced from Chennai plant to the domestic market, instead of shipping them overseas.
Nokia management had responded to the notice, saying that it was a "baseless" claim by the Sale Tax Department.
Nokia in its petition prayed for grant of interim stay of the operation of the February 28 notices served on it for the assessment year 2009-10, 2010-11 and 2011-12 accusing the company of evading tax and demanding payment of Rs 2400 crore dues.
It also prayed for restraining the Sales Taxes department from taking any coercive steps in any manner whatsoever in pursuance of the impugned order.