“Installment has increased to 48 and not 60”, says the detailed order of the Supreme Court in the review petition about GIDC.
The detailed order of the Supreme Court in the review petition regarding Gas Infrastructure Development Cess (GIDC) has been released today. Here is a quick summary of what has transpired in the GIDC case so far.
Despite media reports, a perusal of the order suggests that installments have been increased to 48 and not 60. This is being termed as a ‘surprising change’ by experts and industry players alike.
The six months allotted to the government for the commencement of operations for laying the North-South Gas Pipeline has been extended to twelve months.
The court has categorically confirmed in paragraph 7 of its order that the exclusion from GIDC liability for retrospective application to persons falling under the category of “Industry” subject to the condition in accordance with section 8(2) is applicable, and that no bar was put against the verdict.
The relief provided to a certain class, therefore, be claimed in accordance with the law.
According to the review judgment, the gas supply companies now have to issue fresh bills for the recovery of the GIDC payment based on 48 installments.
The industry that intends to claim the benefit of Section 8(2) may also need to inform the gas supply companies to exclude the incidence of GIDC for the period before the GIDC Act 2015 while calculating the final liability.
The gas supply companies or the government may also need to develop the mechanisms or modalities to verify such claims as they deem appropriate.