Gail India - Sales Tax appeal in favour of Gail

Gail India Ltd has announced that on the July 06, 2006 the Gujarat Sales tax tribunal has upheld the earlier position of the Company in the matter of the claim made by the sales tax department for Rs 49620 million.

The Annual accounts of the Company right from 1999-2000 showed an amount of Rs 49620 million as contingent liabilities. Earlier, the Gujarat Sales tax tribunal in May 2005 had given the verdict in favor of the Company accepting the contention of the Company for interstate transportation of natural gas as branch transfer and not the interstate sale and set aside the demand made by the sales tax department.

The sales tax department had filed a rectification appeal in the tribunal in this matter. However, after this decision by the tribunal the overall contingent liability of the company has reduced by 50%.

Source : Equity Bulls

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