- (1.) Leave granted.
(2.) These appeals by special leave challenge correctness of the common judgment and order dated 27.02.2012 passed by the High Court of Delhi at New Delhi in Sales Tax Appeal No.20 of 2012 and other connected matters. Apart from lead matter i.e. Sales Tax Appeal No.20 of 2012 filed by Indo Burma Petroleum Corporation Ltd., the High Court also dealt with Sales Tax Appeal Nos.6, 7, 10, 14, 16, 23, 25 and 27 of 2012 filed by Hindustan Petroleum Corporation Limited, Sales Tax Appeal Nos.8, 11, 17, 18, 21, 22, 28 and 30 of 2012 filed by Indain Oil Corporation Limited and Sales Tax Appeal Nos.9, 12, 13, 15, 19, 24, 26 and 29 of 2012 filed by Bharat Petroleum Corporation Limited. These petroleum companies had filed Sales Tax Appeals under Section 81 of the Delhi Value Added Tax Act, 2004 ("the Act" for Short).
(3.) On 01.06.2006 rates of Petrol and High Speed Diesel were increased by Rs.4/- and Rs.2/- respectively from the midnight of 5/6th June, 2006. This increase in rates would have resulted in ad valorem increase in Value Added Tax (VAT) at the rate of 0.66 paise per litre of Petrol and 0.22 paise per litre of High Speed Diesel. With a view to grant some relief in the price rise to the customers, the Government of National Capital Territory of Delhi issued a Memorandum dated 20.06.2006 which was to the following effect: "GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI OFFICE OF THE COMMISSIONER, VALUE ADDED TAX DEPARTMENT OF TRADE AND TAXES, BIKRIKAR BHAWAN, I.P. ESTATE, NEW DELHI No.F1[13/Pll/VAT/Act/2006/2069 Dated 20th June, 2006 MEMORANDUM In pursuance of the ordinance dated 20.06.2006 [copy enclosed] promulgated by the Lt. Governor of the National Capital Territory of Delhi, Value Added Tax shall not be charged with immediate effect on the incremental prices [including the duties and levies charged thereon by the Central Government] of petrol and diesel as has been announced by the Government of India with effect from 6th June, 2006. Therefore, diesel and petrol shall be sold in the National Capital Territory of Delhi by not taking into account the component of the Value Added Tax on the increased price with immediate effect, meaning thereby that VAT shall continue to be charged on the pre-revised prices of diesel and petrol till further notification in this regard. [HANS RAJ] ADDITIONAL COMMISSIONER [POLICY]";