BANGALORE: The High Court on Thursday upheld the inter-state sales tax levied on Japan-based Mitsubishi Company by the state government. A division bench comprising Justice N Kumar ruled in favour of the state government which had levied a cost of `32 crore as inter-state sales tax on the company. The tax was imposed on the company for transporting rail coaches for Delhi metro project from Karnataka. Mitsubishi had given the contract for constructing coaches to BEML in Karnataka, and for the year 2003-05 it had constructed 10 such coaches. While transporting them the tax was imposed. The company had challenged the imposition of tax for the financial year 2003-05 before an appellate tribunal which ruled in the favour of the state. Later the high court dismissed their appeal. With the order upholding the levy of tax, the state exchequer will be benefited with up to `282 crore. So far the BEML has constructed over 170 such coaches which has been transported to Delhi for metro project.
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