Taxmen seal Rs 10 crore stocks of Vimal Oil

The state sales tax department has attached the stocks of Mehsana-based Vimal Oil and Foods, worth around Rs 10 crore. It has also seized the bank accounts of the company on Friday under Section 48 (A) of the Gujarat Sales-tax Act, 1969.

The Rs 200 crore company is engaged in the manufacturing of edible oils.

"The department is harassing us. We are ready with all our papers and will produce them as and when required," said Jayesh Patel, managing director, Vimal Oil and Foods, on Monday.

The sales tax department had earlier issued an assessment order of Rs 2.41 crore in the assessment year 2001-2002 and for Rs 27.50 crore in the assessment year 2002-2003, against which the company has already filed an appeal.

"We are carrying out our investigation and it is difficult to comment anything at this point of time," said Raj Kumar, special commissioner, enforcement, sales tax, Gujarat.

Even the income tax department had carried out a search operation at various premises of the company in August last year and had seized files and documents.

On the releasing of the investigation reports, Kumar said, "It depends upon how fast the other party is co-operating with us."

Indian promoters hold around a 28 per cent share in the company, 60 per cent by the public, and 11 per cent by private corporate bodies among others.

The company has reported a net profit of Rs 9.41 crore on a turnover of Rs 239 crore as on March 31, 2004, and aims to maintain a growth rate of 20 per cent per annum.