The bank accounts of Bhilai Steel Plant (BSP) — the flagship entity of the Steel Authority of India Limited (SAIL) — have been attached for failing to pay dues to the commercial tax department of Chhattisgarh government.
The BSP was due to pay Rs 408 crore as entry tax to the state government. The SAIL entity and others had earlier challenged the imposition of tax in the court of law. The Bilaspur high court on September 10 gave the ruling in favour of the state government justifying the entry tax.
On September 11, the commercial tax department through the Durg district administration served notice on BSP asking to pay the dues within three days. Sources said the BSP officials pleaded for three months time. But the state government did not entertain it and issued order to the BSP branch of State Bank of India (SBI) to attach all the accounts of the company.
“Since the BSP management was intentionally delaying to pay the dues, the state government had to take the drastic step of attaching the bank accounts of the company yesterday evening,” R K Meshram, Deputy Commissioner of Commercial Tax department said.
The company had been asked to clear the dues at the earliest.
When contacted, the BSP officials said the finance section was looking into the matter and would come out with a statement later in the day to clarify stand of the company on the issue.