The Gujarat Sales Tax Tribunal (GSTT), Ahmedabad, has set aside sales tax demand of Rs 4,962 crore on Gail. According to a release issued by Gail to the BSE, the order passed on May 16, 2005, has upheld the stand of the company that transportation of natural gas by the company from Gujarat to other states amounts to 'Stock Transfer' and not 'Inter State sale'.The Gujarat Sales Tax Department claims that the company carries gas from Gujarat to other states under its ownership and transfers the ownership at the custody transfer point and claim it as 'Stock Transfer'Gail initially contested the case at the Supreme Court. The Supreme Court transferred the case to the State Tribunal on the ground that the issue did not involve pure question of Law, the release said. The tribunal after verifying the process involved for transmission of gas, has set aside the demand of the Sales Tax Department and ordered to make regular assessment u/s 41, considering the transfer of gas from Gujarat to other states as Stock Transfer.
