Allahabad HC Rules Entry Tax on Natural Gas Transmission Cannot Include Sale Price

The Allahabad High Court ruled that entry tax on the transmission of natural gas cannot be levied on the sale price when the purchase value is ascertainable. GAIL India Ltd had entered into agreements with ONGC for procurement and with consumers in Uttar Pradesh for sale. The assessing authority levied entry tax on the sale value, including transmission charges and margins. However, the court clarified that only when the purchase value is unascertainable can the sale price be considered for entry tax. Since the purchase price was determinable, the court quashed the Tribunal’s order of remand and directed it to decide the matter afresh, emphasizing the importance of clarity in tax assessments.