Essar Oil has tanked 28% to Rs 42 on opening deals after the Supreme Court on Tuesday rejected the company’s 125% sales tax deferment benefit claim on its investment in the Vadinar refinery project.
The company will now have to fork out at least Rs 6,300 crore in sales tax to the Gujarat government.
“A bench comprising Justice Ashok Kumar Ganguly and Justice Jagdish Singh Khehar said the company could not claim the benefit of an exemption scheme as it had not started production at its refinery in Vadinar during the qualifying period,” a report suggests.
A combined 3.58 million shares have already changed hands on the counter on opening deals against an average less than three million shares that were traded daily in past two weeks on the NSE and BSE.
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