HC asks IT to release Nokia's Chennai plant; experts react

The Delhi High Court on Thursday released Nokia's frozen Chennai manufacturing plant as part of a tax dispute for just Rs 2,250 crore. According to government, the amount should have been somewhere between Rs 10,000-15,000 crore. The government is likely to take a decision on the tax dispute on Monday. CNBC-TV18 spoke to Sanjeev Sabharwal, counsel, Tax Department and Vikas Srivastav, lawyer, Nokia to know more on the issue.

Below is the verbatim transcript of their interview on channel

Sanjeev Sabharwal, counsel, Tax Department

Q: What is you view on the verdict?

A: The judges have done their best. They have balanced the equities of both the sides. It also clears out a very wrong notion that Indian courts don't work.

Q: The court feels that the taxation figure, the liability amount which has being computed by the IT department is actually inflated?

A: There is a comment to that effect. However, when I went through with the tax department to these figures, they are also correct. It is a separate issue that you have to levy interest but that is a statutory interest.

Even Supreme Court has said that statutory interest has to be levied.

Q: You mean to say that the inflated figure actually factors in the interest component and the penalty component.

A: Yes and that has to be levied. Under the statute we have levy it. If we don't levy it here then we lose the chance to ever levy it.

Vikas Srivastav, lawyer, Nokia

Q: What lies ahead for Nokia?

A: Due to the delay, because of the court case we haven't moved fast enough and we are well behind other parts of the world in terms of processing our permissions. So, while we are on course but time is of essence, not tax maybe, but we will need many approvals and a lot of support from the ministry of commerce, the Tamil Nadu government and various other agencies.

Q: What kind of message do you think this sends out to the foreign investor community because IT department atleast has hailed the judgement in one aspect that now atleast the investors would have faith in the Indian judicial system?

A: I would tend to agree with the IT department. I keep repeating it subject to the fine print in the order. We do feel that Indian judiciary is moving with change in the times as far as the economy and economics is concerned. It is and it should reinforce the faith of foreign investors not only in India but also in the judiciary.

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