Supreme Court rules in favor of oil companies in siphoning dispute

The Supreme Court upheld the decision of the Appellate Tribunal, ruling that there was no siphoning of extra funds to the refinery by oil companies. The Tribunal dismissed the Revenue's argument that the agreement did not reflect the true transaction value, noting it was in compliance with government directives to reduce transportation costs and serve mutual interests.

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The Supreme Court held that there was no siphoning of extra amount to refinery by oil companies, as per the impugned order of the Appellate Tribunal. The Tribunal rejected the Revenue's plea that the agreement between the refinery and oil companies did not reflect the true transaction value, stating it was for mutual interest and to reduce transportation costs as directed by the Government of India.

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