New Delhi: In a move that can put the Indian Oil Corporation (IOC) in trouble, The Supreme Court has instructed it to pay the outstanding dues of Rs 2,076 crore entry tax to the Uttar Pradesh government. The Apex Court in an interim order directed the company to pay 50 percent of the due amount to the government in cash and the rest in form of bank guarantee.

The interim order was issued during the hearing on a petition filed in this regard.

It is to be noted, the Allahabad High Court had termed the UP Tax on Entry of Goods Act 2007 as constitutional but the IOC along with other companies challenged the High Court’s order in the Supreme Court.

The Apex Court had inquired the state government about the outstanding tax amount to be paid by the companies. In its reply, the UP government filed an affidavit giving details on the unpaid entry tax worth Rs 2076 crore whereas the outstanding dues of 2009-10 still remains under calculation.

The UP government counsel, GV Rao said, “Apart from the outstanding tax of Rs 2,076 core, the IOC also needs to pay the additional interest amount.”

He added, “We have not received a copy of court’s order due to which the conditions for the mode of payment are yet to be made clear. However, it is final that half of the amount is to be paid by the company in cash while the remaining will be paid as bank guarantee.”