Essar Oil rises post Supreme Court order

The company has been directed to pay sales tax dues in installments

Essar Oil is trading higher by 6% at Rs 51.20 after the Supreme Court directed the company to pay the balance sale tax dues in installments spread over two years.

“Honourable Supreme Court passed a judgment in the Gujarat sales tax case, directing Essar Oil to pay the balance sale tax dues in installments spread over two years. The balance dues of Rs 5,165 crore in now payable in eight quarterly installments beginning January 2, 2013,” Essar Oil said in a filing.

The Supreme Court dismissed the interest demand of around Rs 1,800 crore for the period up to January 17, 2012, while directed the payment at the rate of only 10% per annum against 18% per annum demanded by the Gujarat State for the period beyond January 17, 2012, it added.

The stock opened at Rs 50.10 and hit a high of Rs 51.50 on the BSE. A combined 2.04 million shares have changed hands on the counter in morning trades on both the exchanges.