Indian Oil Corporation Ltd has announced that High Court of Allahabad has dismissed IndianOil's Writ Petition and upheld the U.P. Entry Tax Act 2007, whereby the State of U.P. was entitled to levy entry tax on crude oil brought into Mathura for refining in Mathura Refinery of IndianOil. IndianOil filed a Special Leave Petition in Supreme Court wherein Interim Order has been pronounced on January 17, 2012 stating that the operation of the judgement of Allahabad High Court is stayed subject to IndianOil depositing 5O% of the accrued tax liability / arrears under the U.P.Entry Tax Act 2007 and furnish Bank Guarantee for the balance amount. The amount so deposited / paid and the Bank Guarantees furnished is however subject to result of the appeal.
The above orders may have financial implication on the Company, which is under examination.
The matter is also being examined legally for further course of action.
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