Tax dispute: Centre backs Nissan's move to approach international tribunal

The state government is of the stance that according to the MoU between the company and the government, the dispute has to be heard at a court in Tamil Nadu

In a new development in the ongoing tax repayment dispute between Nissan and the Tamil Nadu government, the Centre has backed Nissan's right to approach the International Arbitration Tribunal constituted under the Comprehensive Economic Partnership Agreement (CEPA). 

The Centre has submitted to the Madras High Court that under international law, a country is viewed as a single unit and proceedings may be initiated against the Union even for independent acts of the federal units.

The state government is of the stance that according to the memorandum of understanding (MoU) between the company and the government, the dispute has to be heard at