Authority: Supreme Court of India

Order Date: 22 July 2026

Case Overview

  • Appellant: M/s Gas Authority of India Limited (now GAIL (India) Limited) and its subsidiary GAIL Gas Limited.
  • Respondent: State of Uttar Pradesh and others.
  • The appeals arise from reassessment proceedings under the Entry Tax Act, 1976 for assessment years 2004‑05 and 2005‑06, initiated by the Deputy Commissioner (Assessment), Sector 11, Commercial Taxes, Agra, after the appellant issued invoices alleging meter tampering by certain consumers.
  • During the pendency of the writ petition and civil appeals, several consumers against whom the invoices were raised initiated arbitration; some arbitration awards were rendered in favor of the consumers.

Final Outcome

  • The Court directs the appellant to approach the Assessing Officer with an affidavit detailing the exact status of all invoices that gave rise to the show‑cause notices.
  • GAIL Gas Limited, a subsidiary of GAIL (India) Limited, shall appear before the Assessing Officer.
  • The Assessing Officer shall determine the entry‑tax liability in accordance with law, based on any amounts actually received against the disputed invoices.
  • Both Civil Appeals No. 2131/2012 and No. 2132/2012 are disposed of; any pending applications are also disposed.

Topics: Entry Tax, Gas Supply Arbitration, Supreme Court Order