Gujarat High Court Resolves 20-Year Tax Dispute for Hindustan Petroleum

High Court Allows Consideration of Original Form 'F' Worth Rs. 6.29 Crores, Ending Long-Standing Litigation

In a significant development, the Gujarat High Court has brought closure to a prolonged 20-year legal battle involving M/s Hindustan Petroleum Corporation Limited (HPCL) and the Deputy Commissioner of State Tax. The case revolved around the non-production of an original statutory Form 'F' related to branch transfers under the Central Sales Tax Act, 1956, and the Gujarat Value Added Tax Act, 2003.

The court's decision, dated November 14, 2025, was rendered by a division bench comprising Justices A.S. Supehia and Pranav Trivedi. The bench considered the production of the original Form 'F', which was verified by the authorities, and allowed its consideration for transactions amounting to Rs. 6,29,59,345.

The litigation, which spanned nearly two decades, saw multiple rounds before various appellate authorities and the Gujarat Value Added Tax Tribunal. Initially, HPCL faced an assessment order in 2008 demanding a sum of Rs. 108.59 crores for the Assessment Year 2003-04 due to the absence of the requisite Form 'F'. This led to a series of appeals and remands, with partial relief granted over the years as different portions of the Form 'F' were produced and accepted.

Despite the Tribunal's earlier dismissal of HPCL's claim for Rs. 6.29 crores due to the production of a duplicate rather than the original form, the petitioner finally presented the original Form 'F' before the High Court. The court, acknowledging the lengthy litigation and the verified authenticity of the form, granted HPCL's request to consider the form for the said amount.

The court's order also mandates that HPCL must pay dues for transactions where the remaining Form 'F' was not produced within a 12-week timeframe. The decision marks a crucial resolution in the case, ensuring compliance with statutory requirements while providing relief to the petitioner.

The judgment underscores the importance of adhering to procedural mandates in tax litigation and provides clarity on the treatment of statutory forms in branch transfer cases.

Bottom Line:

Production of original statutory Form 'F' for branch transfer under the Central Sales Tax Act, 1956 and Gujarat Value Added Tax Act, 2003 allowed by the Court after verification, resolving a prolonged litigation of almost 20 years.

Statutory provision(s): Central Sales Tax Act, 1956, Gujarat Value Added Tax Act, 2003

M/s Hindustan Petroleum Corporation Limited v. Deputy Commissioner of State Tax, (Gujarat)(DB) : Law Finder Doc Id # 2810543