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Corporate Apr 4, 2012

No review in sales tax case: SC to Essar Oil

New Delhi: The Supreme Court has refused to review its 17 January judgement which quashed the Gujarat High Court's order allowing Essar Oil Ltd to pay Rs 6,300 crore sales tax liability in deferred installments and extended the time period of the state government's tax incentive scheme.

A bench of justices AK Patnaik and JS Khehar did not find merit in the review petition filed by Essar.

No impact.

Essar Oil had availed Gujarat government's Capital Investment Incentive to Premier/Prestigious Unit Scheme, 1995-2000 for its Rs 1,900 crore Vadinar plant in Jamnagar district as a 100 percent export-oriented unit for refining of petroleum products with a capacity of 9 million tonnes per annum.

The company in a statement said "this order has no new impact on the business".

"Essar Oil has already recognised this liability in its quarterly accounts for the quarter ended December 31, 2011. Essar Oil is in discussion with Gujarat Government for finalising the terms of repayment of Sales Tax liabilities," it stated.

On 17 January, a bench of justices AK Ganguly (since retired) and JS Khehar had said the high court had "virtually re-written" the state government's tax incentive scheme by allowing its extension from 2003 to 2007.

PTI

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