Essar Oil told to pay Rs.1,000 crore dues to Gujarat (Lead)July 18th, 2012 - 12:02 am ICT by IANS
New Delhi, July 17 (IANS) The Supreme Court Tuesday directed Essar Oil to pay by July 31 Rs.1,000 crore to the Gujarat government as its dues towards value added tax (VAT) before the freeze on its bank accounts is lifted.
The apex court bench of Justice A.K. Patnaik and Justice Madan B. Lokur gave the direction when Essar Oil made a mentioning inquiring whether it was obliged to pay interest at the rate of 18 percent per annum on the sales tax amount of Rs.6,169 crore under the Gujarat Value Added Tax Act, 2003.
Essar moved the apex court challenging the attachment of its bank accounts and saying that it would pay Rs.1,000 crore within two weeks.
Essar Oil had contended that it was not required to pay interest on the sales tax.
It said that it was not questioning the liability to repay the sales tax amount of Rs.6,169 crore.
Essar had to pay the money to Gujarat after the apex court held that it was not entitled to defer the payment of sales tax as it did not commence production at its Vadinar refinery in the state by Aug 15, 2003.
The apex court order that Essar Oil was not entitled to defer sales tax came in January this year.
The apex court held that Essar Oil was not entitled to the benefit of the “sales tax deferment benefit” under “capital investment premier/prestigious unit scheme, 1995-2000″.
The Gujarat government had offered an incentive to Essar Oil under the scheme that it would be entitled to the right to defer payment of sales tax by 17 years if it commenced the operation of its Vadinar refinery by Aug 15, 2003.
As Essar Oil missed the deadline, the state government contended that it had also missed the right to defer sales tax for 17 years.
- Essar Oil seeks review of SC decision on tax order - Feb 16, 2012
- Essar Oil's Q3 net loss at Rs.3,986 crore - Feb 17, 2012
- Essar Oil completes expansion of Vadinar refinery - Mar 29, 2012
- Government's plea for Vodafone verdict review dismissed (Lead) - Mar 20, 2012
- Nothing colourable in takeover, Vodafone tells apex court (Lead) - Aug 03, 2011
- BGR Energy bags orders worth Rs.45 crore - Nov 13, 2009
- Court approves demerger of Essar Shipping, Ports and Logistics - Mar 03, 2011
- Apex court adjourns Vodafone plea on income tax order (Lead) - Oct 25, 2010
- Vodafone sends notice on retrospective tax (Lead) - Apr 17, 2012
- Supreme Court asks Vodafone to deposit Rs.2,500 crore (Lead) - Nov 15, 2010
- Energy sector deals worth Rs.7.38 lakh crore at Gujarat summit - Jan 13, 2011
- Budget benefits NRIs and quashes tax fears (Comment) - Apr 07, 2012
- Manmohan inaugurates Bina refinery, announces Bundelkhand package - May 20, 2011
- Manmohan inaugurates Madhya Pradesh refinery (Lead) - May 20, 2011
- Nothing colourable in takeover, Vodafone tells apex court - Aug 03, 2011
Tags: 17 years, annum, apex, apex court, bank accounts, capital investment, court bench, crore, essar oil, gujarat government, july 17, madan, refinery, rs 1, rs 6, sales tax, state government, tax act 2003, unit scheme, value added tax act