"Three bank accounts of EOL have been frozen in Jamnagar district as part of the due recovery process," a top finance department functionary told PTI here.
The division bench of Justice P B Majmudar and Justice Mohinder Pal last month had rejected the petition of EOL which sought that company be allowed to pay the tax dues in installments and also grant it exemption from paying penalty and interest on it.
The court had directed Gujarat government on June 25 to expedite recovery process of the entire amount due. This followed Supreme Court in January stating that EOL was not entitled to defer payment of sales tax, an incentive offered by the Gujarat government for the company to start production at its Vadinar refinery in the state by August 15, 2003.
Since the deadline was missed, the company lost right to defer sales tax payment by 17 years.
EOL expressed "surprise and disappointment" at the Gujarat government's decision to attach its bank accounts saying it had
clearly stated that it intends to pay Rs 6,169 crore dues.
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"As a statement of its bonafide intent, Essar Oil has already agreed to pay Rs 1,000 crore within 30 days to the Gujarat government towards the sales tax liability," the company said in a statement.
"Essar Oil has written to the state government requesting that a committee be formed which can jointly discuss the modalities of the payment of the balance principal amount of Rs 5,169 crore and consider a remission of the past interest of Rs 1,932 crore," the statement said. (MORE)