SC may reverse interim relief granted to cos on state entry tax

The Supreme Court may vacate its earlier stance of providing relief on the contentious entry tax issue, and may now ask companies to pay full 100 percent of entry tax due.The apex court today observed that the interim relief granted in 2013 -- by way of payment of only 50 percent of entry tax -- "deprives states of dues".The entry tax is levied on raw materials that companies bring in into states for their manufacturing units.The interim relief benefited about 350 companies, including names such as Vedanta, Adani, Tata Steel and Reliance Industries.During a hearing today, the SC today said companies must deposit 100 percent of the entry tax due, which can be locked into term deposits, and will be returned back to companies if their stand of challenging the legality of entry tax is vindicated.The nine-bench Constitution bench will next hear the case on May 11.