Essar offers to pay sales tax dues in installments
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- Business & Industry
- Wednesday, 18 July 2012 15:32
- Published on Wednesday, 18 July 2012 15:32
- Hits: 1338
Gujarat Global News Network, New Delhi
Essar Oil Ltd (EOL) on Tuesday told the Supreme Court that it has offered to pay to Gujarat government the sales tax liability of Rs 6,300 crore in installments, the first of which will be deposited by July 30.
Earlier the company had approached the HC, which had shot down its plea for relief. The company made a submission in this regard before a bench comprising justices A K Patnaik and Madan B Lokur, which said once the first installment of Rs 1,000 crore is paid, coercive action already taken by Gujarat government will be stayed.
A few days ago the Gujarat government had attached three bank accounts of the company, after the HC had asked the state government to expedite the recovery process from the company.
In a statement, the company said “as previously announced, Essar Oil is also in advanced discussions with Indian lenders with regard to putting in place a Rs 50 billion loan facility as a contingency measure for use in the event that the sales tax liability becomes payable immediately or that Essar Oil is not able to negotiate a satisfactory repayment schedule. We expect this facility to be finalised shortly.”
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