(Image source from: Essar Oil loses)

The oil refinery Essar Oil in the State of Gujarat again lost its case in Supreme Court in getting time to pay Sales Tax dues.

Essar Oil’s plea for a rebate on Sales Tax to the tune of Rs.6185 crores was lost by the company in the year 2012. After the company paid a sum of Rs.1000 crores, the apex court allowed the company to pay the remaining amount of Rs.5185 crores in eight equal instalments with an interest at 10% as applicable in the State of Gujarat.

The company after paying a sum of Rs.2941 crores and an interest of Rs.756 crores to the State Government declared that it cannot pay the fourth installment and the rest of the amount now. It wanted to have a time of three years at least to make the payment of dues permission for which the Supreme Court denied to give telling that the State Government is not agreeing to it.

Senior Advocate Mukul Rohtagi defending the oil company said that the Essar is the only oil company giving employment to 10000 and the one which did not receive any incentive from the Government. But the advocate appeared on behalf of the State Government of Gujarat said that the request of the oil company is not acceptable.

-SriJa