The record
Written from the 1 report below. Nothing here is unsourced.
- The Supreme Court has ruled that BPCL and HPCL must pay service tax on commissions they earned from selling Mahanagar Gas Limited's CNG at their petrol pumps.
- The court held that the two oil companies were not independent sellers of the CNG but were acting as agents facilitating sales on MGL's behalf, so their services fall under business auxiliary service.
- The bench of Justice Aravind Kumar and Justice N.V.
- Anjaria restored a service tax demand of about Rs 16.69 crore, comprising Rs 8.61 crore on BPCL and Rs 8.08 crore on HPCL.
- The companies will also have to pay interest and penalty along with the tax.
What to watch next
- Payment of interest and penalty amounts, which the ruling says apply in addition to the Rs 16.69 crore tax
- Whether similar service tax demands are pursued against other fuel retailers selling CNG on commission
Coverage1
1 report
Indian-language1
All filed from India
Named India · Bharat Petroleum Corporation Limited · Hindustan Petroleum Corporation Limited · Mahanagar Gas Limited · Justice Aravind Kumar · Justice NV Anjaria · Supreme Court of India
The 1 report is listed beside the record.
Ask this story
Answers cite the reports above, or say they can't.