JSL denies tax default

Denying charges of commercial tax default leveled by the state government, JSL Ltd said it would follow the directive of the Orissa High Court on tax cases pending in the court.

The steel company said since it has filed cases against the payment orders passed by the tax authorities and had paid some interim dues, there are no tax liabilities on the company as of now.

“No (tax) demand is outstanding as on date,” said Rajdeep Mohanty, resident director of JSL Ltd.

On March 26, state finance minister Prafulla Ghadai said in a written statement in the assembly that 16 companies owe Rs 18.54 crore by way of value added tax (VAT), Rs 38.51 crore of Central Sales Tax (CST) and Rs 183.75 crore of entry tax.

The single biggest defaulter among these 16 companies is JSL, whose overall tax arrears stand at Rs 108.53 crore. This includes Rs 83.18 crore of entry tax and CST dues worth Rs 33.06 crore, the minister said in the reply.

JSL said it had paid 25 per cent of pending CST dues as per the interim High Court order last year and said the case is still pending in the court.

In case of entry tax, the company said, the actual amount was Rs 27 crore which increased to Rs 83.18 crore after the addition of interest and penalty. The company has also challenged the entry tax payments orders in the High Court and has paid Rs 1.08 crore as per the interim order of the court on March 23 this year, Mohanty, said.