2012 (4) TMI 587 - SC - VAT and Sales Tax

Demand of U.P. VAT - Demand on the basis of the terms of the agreement between the parties (GSPA)and not on anything contained in the orders of this Court dated 23rd January, 2012, or 24th February, 2012.

Summary

Issues:
1. Clarification sought by NTPC Ltd. regarding payment of CST and U.P. VAT.
2. Statement made by Reliance Industries Ltd. regarding U.P. VAT demand based on the agreement terms.
3. Customers' freedom to dispute and pursue remedies if they disagree with the demand.
4. Assurance that the order's observations will not impact the High Court matter.
5. Disposal of I.A. No.6 of 2012 filed by NTPC Ltd.
6. Disposal of I.A. No.7 of 2012 filed by M/s. TATA Chemicals Limited.

Analysis:
1. NTPC Ltd. filed I.A. No.6 of 2012 seeking clarification on the order dated 24th February, 2012, along with the order dated 23rd January, 2012, concerning the payment of CST and U.P. VAT.
2. Reliance Industries Ltd.'s senior counsel, Mr. Harish N. Salve, clarified that the demand for U.P. VAT from Reliance Industries Ltd. is rooted in the agreement terms (GSPA) between the parties, not in the Supreme Court's orders from January and February 2012.
3. The Court emphasized that if any customers challenge this demand, they are entitled to dispute it and seek available remedies as per their rights.
4. It was explicitly stated that any observations made in the present order would not influence the outcome of the ongoing matter before the High Court, ensuring the independence of the proceedings.
5. Consequently, I.A. No.6 of 2012 filed by NTPC Ltd. was disposed of by the Court, providing the sought clarification and addressing the concerns related to CST and U.P. VAT payment.
6. Additionally, I.A. No.7 of 2012, filed by M/s. TATA Chemicals Limited, was also disposed of by the Court, taking into account the clarifications and decisions made in relation to I.A. No.6 of 2012, thereby concluding the matter for TATA Chemicals Limited as well.