SC dismisses Gujarat govt plea on VAT on discount

The plea challenged the exclusion of a discount for calculating VAT that state-owned Oil and Natural Gas Corp. Ltd gave to oil marketing companies

New Delhi: The Supreme Court on Monday dismissed a Gujarat government plea challenging the exclusion of a discount for calculating value-added tax (VAT) that state-owned Oil and Natural Gas Corp. Ltd (ONGC) gave to oil marketing companies (OMCs).

The government had approached the apex court appealing a Gujarat high court verdict of 18 December 2014 which said that the discount given by ONGC to OMCs would not be part of the taxable turnover for VAT levy.

The government has claimed that over 1,000 crore is due over from 2004-05 to 2010-11.

A bench headed by chief justice H. L. Dattu did not entertain the appeal.

The Central government had asked ONGC to supply certain products like LPG, kerosene, diesel and naphtha on subsidised rates in 2009.

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