Gujarat Govt. files SLP against HC Order allowing Sales Tax Exemption to Inter-State Sales of LPG: SC issues notice

Ambiguity - Supreme Court - Tax - Taxscan

The Gujarat State Government has filed Special Leave Petition in Supreme Court challenging Gujarat High Court order allowing Exemption to Central Sales Tax to Inter-States sales of Liquefied petroleum Gas (LPG).

The Gujarat High Court held that amendment in entry 69 of Gujarat Value Added Tax Act with effect from 3.10.2008 would make no difference and addition of the words “by the consumers of the State” in the said entry would not alter the leviability of the central sales tax in terms of section 8(1) of the Act.

A bench headed by Justice Ranjan Gogoi issued notice to Reliance Industries Limited (RIL) after the state government challenged the October last year’s order of the Gujarat High Court.

The respondent RIL is engaged in the refining and sale of petroleum products and is registered under the Gujarat Value Added Tax Act as well as under the Central Sales Tax Act. During the period under consideration the Respondent sold Liquified Petroleum Gas for domestic use to LPG Infrastructure Pvt.Ltd.

In a similar issue, Supreme Court had stayed the order of the Gujarat high court declining exemption from tax on the inter ¬State sales of LPG. The order came from an appeal filed by Essar Oil Ltd for exemption from paying value added tax (VAT) on kerosene and LPG.