With Centre failing to thrash out the dispute, the Supreme Court today agreed to hear Mayawati government's appeal challenging a stay imposed by Allahabad High Court on the Rs 724 crore VAT levied on Reliance Industries Limited for sale of gas in the state.

A bench of justices Altamas Kabir and S S Nijjar granted two weeks' time to the respective parties to file their counter affidavits and posted the matter for final disposal.

The bench passed the direction after senior counsel Krishnan Venugopal, appearing for Uttar Pradesh government and counsel appearing for the Centre, told the court that the tripartite talks between representatives of the Union, UP government and RIL failed to hammer out a solution to the tax dispute.

"Since the Centre has not been able to sort out the dispute, it would be ideal if the matter is taken up for final disposal," Krishnan told the bench.

After the counsel representing the Centre also admitted that no headway could be made on the tripartite talks held this month, the court asked the parties to file their counter affidavits.