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Essar Oil to pay sales tax to Guj Govt in installments:SC told

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Press Trust of India New Delhi
Last Updated : Jan 24 2013 | 2:11 AM IST

The submission in this regard was made by the company before a bench comprising justices A K Patnaik and Madan B Lokur which said once the first instalment of Rs 1000 crore is paid, coercive action already taken by Gujarat government will be stayed.

Senior advocate Mukul Rohatgi and Mahesh Agarwal, appearing for Essar Oil, also raised the issue of waiving the interest on the amount.

However, the bench said any other issue will be considered on the next date of hearing on July 31.

Essar Oil Ltd had approached the apex court against the order of the Gujarat High Court which had refused any relief to it for making the payment in instalments.

Essar Oil had availed Gujarat government's 'Capital Investment Incentive to Premier/Prestigious Unit Scheme, 1995-2000' for its Rs 1900-crore Vadinar plant in Jamnagar district as a 100 per cent export-oriented unit for refining of petroleum products with a capacity of 9 million tonnes per annum.

In a statement, the company said "as previously announced, Essar Oil is also in advanced discussions with Indian lenders with regard to putting in place a Rs 50 billion loan facility as a contingency measure for use in the event that the sales tax liability becomes payable immediately or that Essar Oil is not able to negotiate a satisfactory repayment schedule. We expect this facility to be finalised shortly."

  

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First Published: Jul 17 2012 | 6:05 PM IST

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