GAIL (India) gains after Gujarat HC decision

GAIL (India) rose 0.87% to Rs 377.40 at 10:08 IST on BSE after the company announced decision of Gujarat High Court on levy of sales tax on inter state sale of natural gas.

The announcement was made after market hours yesterday, 7 August 2018.

Meanwhile, the S&P BSE Sensex was up 19.38 points, or 0.05% to 37,685.18.

On the BSE, 32,000 shares were traded in the counter so far compared with average daily volumes of 1.15 lakh shares in the past two weeks. The stock had hit a high of Rs 382.40 and a low of Rs 376.05 so far during the day. The stock hit a record high of Rs 392.20 on 6 August 2018. The stock hit a 52-week low of Rs 267.23 on 11 August 2017.

GAIL (India) announced that Sales Tax Department raised a demand of Rs 3449.18 crore and interest thereon Rs 1513.04 crore in respect of Hazira unit in Gujarat, treating the transfer of natural gas from the State of Gujarat to other states, as inter-state sales, during the period from April 1994 to March 2001. Based on the direction of Supreme Court of India in the special writ petition filed by GAIL, the Gujarat Sales Tax Tribunal passed the order in GAIL's favour and gave instructions for reassessment, considering inter-state transfer as branch transfer. The Sales Tax Department had filed rectification application under section 72 of the Gujarat Sales Tax Act, 1969 with the Gujarat Sales Tax Tribunal which was dismissed by the Tribunal. Thereafter, the Sales Tax Department had filed petitions before the High Court of Gujarat against the order of the Tribunal and the same was pending as on 31 March 2018. The High Court of Gujarat vide Order dated 31 July 2018 has dismissed the petitions filed by the Gujarat Sales Tax Department.

Net profit of GAIL (India) rose 292.42% to Rs 1020.92 crore on 14.71% rise in net sales to Rs 15430.69 crore in Q4 March 2018 over Q4 March 2017.

GAIL (India) is India's largest natural gas company and ranked among the top gas utilities in Asia.

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