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Odisha To Move SC

The State Government today said it may move the Supreme Court contesting Orissa High Court’s recent order in which it kept in abeyance a demand notice of VAT recovery from Indian Oil Corporation Limited (IOCL).

“As the High Court did not specifically order that VAT should not be collected from ICOL, we may approach higher court over the matter,” BJD Spokesperson Pratap Jena told Media Men here today.
He alleged that the IOCL had breached the agreement by enhancing the capacity of the refinery plant without consulting the State Government leading to losses to the State exchequer.
“The Centre has already stopped providing funds to the State under various schemes and to tide over the situation our Govt is trying to maximise revenue,” Jena added.
On the other hand, opposition Bharatiya Janata Party (BJP) slammed the State Government by saying the ruling party (BJD) is against industrialisation. “Why is there an obstacle against IOCL which is working towards the progress of Odisha. Why is the Odisha government creating an issue after the High Court’s order for an amicable solution through discussion,” asked State BJP Chief Spokesperson Sajjan Sharma.
Notably, on February 16, 2004, the State Government and IOCL had signed a MoU for Paradeep Refinery in which the former had agreed to defer collection VAT on all output from the refinery during the first 11 years of the commencement of the unit.
The State Government in February had asked the IOCL to deposit tax of Rs 1485.98 crore for the sale of finished products from its Paradeep Refinery project, which was commissioned in November, 2015.


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