Govt seizes three bank accounts of Essar Oil
/ 1
- Business & Industry
- Tuesday, 10 July 2012 04:53
- Published on Tuesday, 10 July 2012 14:53
- Hits: 1156
Gujarat Global News Network, Jamnagar
The Gujarat government has attached three bank accounts of Essar Oil Limited (EOL) in an attempt to speed up the process of recovery of sales tax dues of more than Rs9,000 crore from the company.
The move comes on the heels of the June 25 Gujarat High court directives to the state government to expedite the recovery of sales tax dues from the oil giant. As per official, three bank accounts of Essar Oil, Two accounts of SBI, and one in HDFC Bank—all in Jamnagar, were attached by the department of commercial tax.
On June 25, Gujarat HC division bench of Justice P B Majmudar and Justice Mohinder Pal had rejected EOL’s petition seeking relief in payment of the sales tax liabilities. The HC had also pulled up the company for its behaviour saying, “We fail to understand as to why the company, which had collected the sales tax from its customers and invested the said amount in its own project, asks for such benefit on equitable grounds.”
The SC had earlier ruled that Essar Oil was not eligible to avail benefit of tax exemption under the ‘Capital Incentive to Premier and Prestigious Unit Scheme 1995-2000’. This was because it did not start commercial production within deadline.
For News in Hindi, see our Hindi daily Chaupal Chronicle
