Essar Oil seeks review of SC order on sales tax payment
16 February 2012
Essar Oil has filed a petition in the Supreme Court seeking to review a judgment that prevents the company from deferring payment of sales tax to the Gujarat government.
The Supreme Court, in its order of 17 January, had overturned a Gujarat High Court ruling that permitted the company to pay the sales tax in deferred installments.
The Gujarat government had demanded that Essar Oil repay Rs6,300 crore ($1.235 billion) plus interest of deferred sales tax as per the Supreme Court order.
The high court order had allowed Essar Oil to pay taxes on revenues from its Vadinar refinery from a later date in six installments.
"We are seeking a review of the apex court's decision relating to repayment of deferred sales tax. On January 17, 2012, the Supreme Court had set aside a Gujarat High Court judgment permitting Essar Oil to avail of a sales tax deferral benefit from the Gujarat Government," Essar Oil said in a press statement today. (See: SC orders Essar Oil to pay Rs6,309-cr sales tax dues)
Essar Oil, 87 per cent owned by London-listed Essar Energy, has deferred Rs6,300 crore (about $1.24 billion) under a deferred tax payment facility provided by the government of Gujarat, where the company's Vadinar refinery is located.