Thursday, May 30, 2024

Petition Against Fuel Tax Fails in Law, but So Does VAT on Diesel Price

New Delhi: The Delhi High Court has disposed of the matter seeking directions to form a high powered committee to look into the matter of rationalization of the prices of petrol and diesel in the entire country and especially in Delhi.

The court found that the petitioner had quoted incorrect law. The petition was about “irrational and unjustified taxes” in the form of excise and VAT on petrol and diesel prices.

The court’s bench of Chief Justice D.N. Patel and Justice Prateek Jalan, while hearing the petition through video conferencing, alerted the counsel appearing for the petitioner for quoting incorrect law. The bench further warned him that it will impose a cost for doing so.

The irony of it all was the immediate – though, certainly not connected – news that the Delhi government today held a press conference and announced that it has reduced the VAT on diesel by 16.75 percent, down from 30 percent. Diesel prices will now fall by Rs. 8.36 per litre, from the current Rs 81.95 per litre. Prices were hiked in May.

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The petition was filed by Susheel Mahajan through advocates N. Pradeep Sharma and Harsh K Sharma, seeking directions to the Centre to reduce the irrational and unjustified taxes in the form of Excise and VAT.

 – India Legal Bureau


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