Nearly Rs 12K cr VAT dues pending recovery: Guj govt

Gujarat tax authorities have pending recovery of nearly Rs 12,000 crore from more than 300 companies operating in Gujarat, which include public sector majors like Oil and Natural Gas Corporation of India (ONGC), Gas Authority of India Ltd (Gail) and private players such as Reliance Industries Ltd and Essar Oil Ltd.

In a written reply to the state assembly on Monday, state finance minister, Vajubhai Vala informed that more than 300 companies reported dues under value added tax (VAT) worth more than close to Rs 12,000 crore as on December 31, 2011.

As per the details provided by the state government, Gail has tax dues worth Rs 106.31 crore, while ONGC, for its units located at Vadodara and Surat has tax dues worth Rs 423.20 crore and Rs 252.65 crore respectively. Among private players, Reliance Industries Ltd (RIL) has dues worth Rs 5.09 crore since January 25, 2010.

Adani Enterprises has dues worth Rs 39.60 crore, the government data showed. Vadodara-based Biotor Industries, manufacturer of castor oil and derivatives products has dues worth Rs 854.51 crore since April 30, 2010.

Some of the companies or industrial groups included dairy cooperatives, marketing cooperatives, manufacturing firms having operations in chemicals, automobiles, food processing and textiles among others. The government also informed recovery of dues from different companies is under various stages of progress.

Vala further informed the house that Essar Oil’s tax dues stand at Rs 8255.47 crore, which includes payable interest for repayment of sales tax benefits.

The company has filed a review petition in the Supreme Court against the latter's order for repayment of sales tax deferment benefits,

Vala, informed that as on January 20, 2012, Essar Oil Ltd has tax dues worth Rs 8255.47 crore with payable interest. "The state government has issued a notice to the company with regard to the dues," a government note said.

Meanwhile, in a separate reply to a question, the finance minister informed the house that Essar has paid Rs 109.39 crore under the current tax liability.