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SC exempts OMCs from excise duty on inter-supply of petroleum products
Quashing the excise duty demands levied on some OMCs, a bench led by Justice Abhay S Oka said that the price fixed under the arrangement was not the sole consideration for the sale by one OMC to the other, but to avail product sharing/assistance from each other to ensure the smooth supply and distribution of petroleum products and to see that there is no disruption in the supply of petroleum products to OMCs all over the country, irrespective of whether an OMC has a refinery or otherwise in a particular part of the country.
Quashing the excise duty demands levied on some OMCs, a bench led by Justice Abhay S Oka said that the price fixed under the arrangement was not the sole consideration for the sale by one OMC to the other, but to avail product sharing/assistance from each other to ensure the smooth supply and distribution of petroleum products and to see that there is no disruption in the supply of petroleum products to OMCs all over the country, irrespective of whether an OMC has a refinery or otherwise in a particular part of the country.
