RIL commits to SC on VAT payment to UP on gas supply

Reliance Industries (RIL) today assured the Supreme Court that it would start paying value added tax (VAT) to the UP government on sale of gas in the state from 1st February till a decision was taken by the Allahabad High Court on its plea against the tax imposition, according to a PTI report.

Taking into consideration RIL's submission, a bench headed by justice Altamas Kabir asked the high court to decide expeditiously the company's plea against state government's decision to impose VAT.

The company also submitted that the effect of imposing VAT would be to pass on the levy to the consumers.

The court's order came on an appeal by the state government that challenged the high court's interim order and stayed the tax imposition on the sale of gas by RIL.

The UP government had gone in  appeal against the 26 July 2011 order of the high court involving a levy of Rs724 crore as VAT for sale of the gas during 2009-2010.

The apex court issued a notice on 23 August 2011 seeking responses from the centre.