Indian Oil Corporation Ltd. vs The State Of Bihar

The Supreme Court addressed the legality of Entry Tax demands under the Bihar Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1993, particularly concerning the set-off of VAT against Entry Tax as per Section 3(2) second proviso. The Court held that the second proviso is not ultra vires the Constitution and affirmed the Patna High Court's ruling that disallowed the set-off of VAT for sales made to oil marketing companies. The Court also clarified that the reopening of assessments based on audit objections is permissible under Section 33 of the VAT Act, thereby upholding the Entry Tax demands against the Appellant amounting to Rs.1,683.03 crores.