The Gujarat government’s sales tax department today attached five bank accounts of Essar Oil in Jamnagar district and recovered Rs 4 crore as part of pending sales tax recovery of close to Rs 8,800 crore.
“We have attached a total of five bank accounts of Essar Oil Ltd and recovered Rs 4 crore from these accounts. The action was taken on Monday as a part of the pending recovery of Rs 8,800 crore from the company on the sales tax deferral case,” said a senior official at office of assistant commissioner of sales tax at Jam Khambhaliya in Jamnagar district.
“Since 2008, the company has already availed the benefits under the state government’s scheme, but has not produced the certificate to have obtained the deferral on sales tax. This has prompted us to attach the bank accounts of the company,” the official said. Of the sealed accounts, two accounts are held with each HDFC bank and State Bank of India, while one account is with ICICI bank, the official sources said.
“Essar Oil is surprised and disappointed by the Gujarat government’s unexpected step of attaching the bank accounts of Essar Oil, despite the company clearly stating its intent to pay the sales tax due to the state. As a statement of its bonafide intent, Essar Oil has already agreed to pay Rs 1,000 crores within 30 days to the government towards the sales tax liability,” the company said in an official statement.