The Supreme Court will start final hearing in July on the dispute between the Uttar Pradesh Government and Hindustan Bajaj over tax benefits claimed by the country's largest sugar producer.
A bench comprising justices Dalveer Bhandari and Deepak Verma has directed to list the matter for final hearing in July. It has also directed the state government to file a rejoinder to the reply filed by Bajaj Hindustan.
Meanwhile, the stay will continue on the orders of the Allahabad High Court directing the state government to reconsider its decision to deny tax benefits to the company under its industry promotion policy.
The Supreme Court's direction came over a petition by the state government challenging the orders of the High court.
The High Court had, on November 16, directed the state cane commissioner to reconsider its decision taken under the Sugar Industry Promotion Policy.
The state government has already assured the apex court that no coercive action would be taken against the company for recovering the tax.
The cane commissioner had on March 3, 2010 declined the demand for tax exemption on the ground that the company had passed resolution on December 26, 2007, six month after the policy was withdrawn by the Government.
It had also said that company's resolution was not presented through an authorised officer and that the documents relating to capital investment of the relevant period were incomplete.
Further, it noted that as per the requirement of the policy, Bajaj Hindustan had failed to produce certificate of employing more than 1,000 people, and submitted no evidence on payment to farmers for buying sugarcane.