Nokia India Private Limited has alleged that the Tamil Nadu government has passed the order pertaining to Rs. 2,400-crore commercial tax demand in a biased manner and in undue haste.

The state government on Friday justified its demand for Rs 2,400-crore commercial tax from Nokia, saying the handset maker didn't furnish essential documents to establish exports.

Defending the government's decision, Advocate General A. L. Somayaji told Madras High Court that mobile phones manufactured in India but not exported would entail VAT of 4 per cent payable to the state government. He pointed out that absence of proof of export of mobile phones worth more than Rs 44,000 crore between 2010 and 2012 prompted the government to issue the notices to Nokia.

But, Nokia argued that it was not given any chance to defend its case in the matter, and alleged that the deputy commissioner worked with a predetermined aim to confirm the tax demand.

The handset maker also alleged, "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 India has also been struggling to settle its Rs 21,000-crore tax dispute with the Center. On March 14, the Supreme Court upheld a lower court verdict over its Chennai plant and ordered it to give a guarantee of Rs 3,500 crore before transferring the facility to Microsoft.