Ahmedabad: Shares in the Ruias-promoted Essar Oil slipped after the Gujarat High Court rejected the company's plea for relief in repayment of over Rs 8,000 crore due as sales tax deferment liability and directed the state to expedite the recovery.
At 10.30 a.m., shares in the company that operates in the exploration and production, and refining businesses traded 3 per cent lower at Rs 53.45 on the BSE, while the Sensex traded 0.10 per cent higher at 16,899.
Essar Oil had sought that the company be allowed to pay the tax dues of Rs 6,414 crore in eight yearly installments. It also wanted exemption from paying penalty and interest of Rs 2000 crore on it.
But, the court came down heavily on the company. "The petitioner should have acted as a good company and furnished the amount to the government and not defrauded the state for its commercial benefit," the bench observed.
"We fail to understand that why the company, which had collected sales tax from its customers and invested the said amount in its own project, ask for such benefit on equitable grounds," the bench said.
Earlier this year the Supreme Court had upheld Gujarat government's appeal against the company's tax benefit claims. Subsequently, tax authorities of Gujarat Government had issued a demand notice to Essar Oil for repayment of sales tax deferment benefits utilised by the company. The state government had put the company's tax dues at Rs 8,414 crore, which included interest and penalty.
(With PTI inputs)
At 10.30 a.m., shares in the company that operates in the exploration and production, and refining businesses traded 3 per cent lower at Rs 53.45 on the BSE, while the Sensex traded 0.10 per cent higher at 16,899.
Essar Oil had sought that the company be allowed to pay the tax dues of Rs 6,414 crore in eight yearly installments. It also wanted exemption from paying penalty and interest of Rs 2000 crore on it.
But, the court came down heavily on the company. "The petitioner should have acted as a good company and furnished the amount to the government and not defrauded the state for its commercial benefit," the bench observed.
"We fail to understand that why the company, which had collected sales tax from its customers and invested the said amount in its own project, ask for such benefit on equitable grounds," the bench said.
Earlier this year the Supreme Court had upheld Gujarat government's appeal against the company's tax benefit claims. Subsequently, tax authorities of Gujarat Government had issued a demand notice to Essar Oil for repayment of sales tax deferment benefits utilised by the company. The state government had put the company's tax dues at Rs 8,414 crore, which included interest and penalty.
(With PTI inputs)
