August 5: State-owned Oil India Ltd (OIL) has informed stock exchanges about key developments in two major tax litigations after recent proceedings before the Supreme Court of India, including significant relief in a long-pending ₹2,484.81 crore Assam land tax dispute.
The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Supreme Court Disposes ₹2,485 Crore Assam Land Tax Case
In a major development, the State of Assam informed the Supreme Court that it intends to withdraw the specific land tax imposed on mineral oil by introducing an appropriate bill in the State Legislature.
Based on this submission, the Supreme Court:
- Disposed of Transferred Case (C) No. 232 of 2020
- Closed the related Writ Appeal No. 599/2005 pending before the Gauhati High Court
- Disposed of all pending interlocutory applications
The dispute related to the Assam Taxation (on Specified Lands) Amendment Act, 2004, under which Oil India had received a tax demand of approximately ₹2,484.81 crore for the period 2005–2024.
Oil India had challenged the levy, arguing that the amended law was unconstitutional.
GST on Royalty Case Moves Ahead
In another ongoing litigation, the Supreme Court heard the matter concerning the levy of GST on royalty payments made by Oil India.
The company has maintained that GST should not apply to royalty paid under the Oil Fields (Regulation & Development) Act, 1948, while the government has taken the opposite view.
During the hearing on July 29, 2026, Oil India’s counsel informed the Court that the company would deposit GST as per law within six weeks, subject to the final outcome of the proceedings.
The matter has been tagged with Udaipur Chamber of Commerce and Industry vs Union of India (Civil Appeal No. 10560/2025) and remains pending before the Supreme Court.
Key Highlights
- Oil India receives relief in ₹2,484.81 crore Assam land tax dispute.
- Supreme Court disposes of the long-pending land tax case.
- Assam government plans to withdraw the disputed mineral oil land tax.
- GST on royalty litigation continues before the Supreme Court.
- Oil India to deposit GST within six weeks, subject to the final verdict.
