STATE OF GUJARAT vs ESSAR OIL LTD.

The Supreme Court upheld the Gujarat High Court's decision granting Essar Oil Limited sales tax incentives under the 'Capital Investment Incentive to Premier/Prestigious Unit Scheme, 1995-2000'. The Court interpreted the eligibility criteria for 'Premier Unit' status as defined in the scheme, confirming that Essar met the requirements of a project cost exceeding Rs.1,000 crores and employing over 100 workers. The Court emphasized that the sales tax deferment scheme was applicable for a period of 17 years from the date of commercial production, thereby affirming the incentives granted to Essar.