RELIANCE INDUSTRIES LTD. Vs. STATE OF GUJARAT

JUDGEMENT

(1.) This group of petitions involves similar facts and identical question of law. They have been heard together and would be disposed of by this common judgment. In all material aspects, facts being common, we may record facts as arising in Special Civil Application No.22283 of 2017 which are as under.

(2.) Petition is filed by Reliance Industries Limited challenging a notice dated 03.11.2017 issued by the Additional Commissioner of State Tax, Ahmedabad, seeking to take into revision an order of assessment dated 30.03.2013 passed by the Deputy Commissioner OF Commercial Tax (hereinafter to be referred to as the 'Assessing Officer' for short). The petitioner has also challenged the consequential notice also dated 03.11.2017, under which, the petitioner was directed to produce necessary accounts in this respect.

(3.) The petitioner in the course of its manufacturing activities, sends goods outside the State by way of branch transfer and suffers reduction of tax credit to the extent of 4% in terms of section 11(3)(b) of the Gujarat Value Added Tax Act ('the VAT Act' for short). According to the department, when the input happens to be fuel, this reduction of tax credit of 4% should be applied twice. The petitioner contends that the reduction in terms of section 11(3)(b) can apply only once and not again. This issue through the appeal route had travelled to the High Court. The High Court by a judgment in case of State of Gujarat Vs. Reliance Industries Limited reported in (2013) 58 VST 376 (Guj) held that the legislature intended to limit the tax credit only once. Even if the input happens to be fuel, such reduction cannot be applied twice. The department carried the judgment of the High Court to the Supreme Court. In case of State of Gujarat Vs. Reliance Industries Limited, reported in 2017 (12) Scale 75, the Supreme Court allowed the appeal of the Government. The Supreme Court by reversing the judgment of the High Court, held and observed as under: