States demand for VAT dues from RIL stayed

HYDERABAD: The High Court on Thursday  stayed the state government's demand for payment of VAT dues of Rs 4 crore made against Reliance Industries Limited on sale of natural gas produced in KG Basin.A vacation bench comprising justices G Chandraiah and N Ravi Shankar gave this interim order while admitting a writ petition filed by Reliance Industries challenging the demand as one without the authority of law. The petitioner contended that the gas production was beyond 12 nautical miles off the coast and outside the territorial jurisdiction of the state.