ID :
203080
Tue, 08/23/2011 - 21:49
Auther :
Shortlink :
https://www.oananews.org//node/203080
The shortlink copeid
SC seeks Centre, AG's response on Mayawati govt appeal in RIL gas row
Delhi, Aug 23(PTI) The Indian Supreme Court Tuesday
sought a response of the Centre and the Attorney General on
Mayawati government's appeal challenging a stay imposed by
Allahabad High Court on the Rs 724 crore VAT levied on
Reliance Industries Limited (RIL) for sale of gas in the north
Indian state Uttar Pradesh.
A bench of justices Altamas Kabir and S S Nijjar sought
the response after senior counsel Harish Salve, appearing for
RIL, sought issuance of notices to the two as the issue
involved larger question of taxation laws.
In its appeal, the UP government, through counsel
Gunnam Venkateswara Rao, assailed July 26 order of the High
Court staying the levy for 2009-2010 on RIL's petition without
giving an opportunity to file its counter affidavit.
"It is submitted that the impugned interim order is
contrary to the settled principle of law that the judicial
courts should refrain from passing such interim orders which
amount to final in nature, which may or may not be passed
after hearing the contesting parties.
"It is further submitted that by the impugned interim
order, the Hon'ble High Court had indirectly stayed a huge
amount of tax without obtaining any security from the
respondent to safeguard the demand created by way of
provisional assessment orders passed against the respondent
(RIL)," the appeal said.
The state government said the interim order of the high
court was contrary to the law laid down by the apex court
which had in the M/S Empire Industries Ltd. Vs. Union of
India (1985) case held "Governments are run on public funds
and if large amount of taxes are held up during the pendency
of litigations, it becomes difficult for the governments to
run."
According to the state, RIL, which is engaged in
extracting and refining petroleum and petrochemical products,
was supplying natural gas to various fertiliser companies in
Uttar Pradesh and hence the state was entitled to levy VAT
on the company in addition to the central taxes paid by the
latter.
RIL had taken the plea in the high court that the
transaction in question is central sale made by it from the
state of Andhra Pradesh and it is not liable to pay local tax
(VAT) to the state government.
sought a response of the Centre and the Attorney General on
Mayawati government's appeal challenging a stay imposed by
Allahabad High Court on the Rs 724 crore VAT levied on
Reliance Industries Limited (RIL) for sale of gas in the north
Indian state Uttar Pradesh.
A bench of justices Altamas Kabir and S S Nijjar sought
the response after senior counsel Harish Salve, appearing for
RIL, sought issuance of notices to the two as the issue
involved larger question of taxation laws.
In its appeal, the UP government, through counsel
Gunnam Venkateswara Rao, assailed July 26 order of the High
Court staying the levy for 2009-2010 on RIL's petition without
giving an opportunity to file its counter affidavit.
"It is submitted that the impugned interim order is
contrary to the settled principle of law that the judicial
courts should refrain from passing such interim orders which
amount to final in nature, which may or may not be passed
after hearing the contesting parties.
"It is further submitted that by the impugned interim
order, the Hon'ble High Court had indirectly stayed a huge
amount of tax without obtaining any security from the
respondent to safeguard the demand created by way of
provisional assessment orders passed against the respondent
(RIL)," the appeal said.
The state government said the interim order of the high
court was contrary to the law laid down by the apex court
which had in the M/S Empire Industries Ltd. Vs. Union of
India (1985) case held "Governments are run on public funds
and if large amount of taxes are held up during the pendency
of litigations, it becomes difficult for the governments to
run."
According to the state, RIL, which is engaged in
extracting and refining petroleum and petrochemical products,
was supplying natural gas to various fertiliser companies in
Uttar Pradesh and hence the state was entitled to levy VAT
on the company in addition to the central taxes paid by the
latter.
RIL had taken the plea in the high court that the
transaction in question is central sale made by it from the
state of Andhra Pradesh and it is not liable to pay local tax
(VAT) to the state government.
