Press Trust of India / New Delhi Jul 23, 2009, 19:07 IST
Bharat Petroleum Corporation Ltd has moved the Supreme Court challenging the Kerala commercial tax department's order asking it to pay additional Rs 160 crore towards sales tax for 1999-2001.
The department has made the additional tax demand on the grounds that the PSU has allegedly filed fabricated documents during tax assessment for 1999-2001.
A Bench headed by Justice B N Agarwal refused to stay the Kerala High Court judgment that asked BPCL to deposit 25 per cent of the amount due along with the security bond in respect of the remaining amount by July 16.
Submitting that the alleged defects in the 'C' form (form for paying tax) can be rectified, BPCL said that if it was not able to remove the defects, the firm would pay interest at a higher rate of 24 per cent per annum on the assessed amount on disposal of the appeal.
"There will be no prejudice caused to the state government if the payment is made upon disposal of the appeal. BPCL is financially sound enough to pay the final amount as may be determined upon disposal of the appeal," the BPCL petition stated.
BPCL had paid sales tax of Rs 2,428 crore in the last four years in Kerala, it said, based on the understanding that there was no defect in the form.
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