Binani Cement says it is committed to paying taxes

Says it only seeks instalments for making payment as provided under law

Binani Cement, which was yesterday questioned by the Supreme Court for not paying sales tax, today said that it is committed to making payment of the liability and is not in any manner trying to default.

In a statement issued by R S Joshi, President (Corporate Affairs), the company said it is only seeking instalments for making the payment as provided under law.

"The Company is committed towards making payment of the liability and is not in any manner trying to default the same but is only seeking instalments as provided under the law. For a company that has already accepted the liability and has made payments as per the High Court order, increased pressure by the government would make the company operation unviable giving the cost of raw material increase and low off take of cement in the current market," the statement said.

"As Binani Cememnt invested Rs 633 crores, the company was entitled for Eligible Fixed Capital Investment. Binani Cement had availed deferment of Rs 457 crores by foreclosing the scheme on August 31, 2011 against eligibility of Rs 488 crore. However, only Rs 280 crores was approved by the State Level Screening Committee, thus deferment availed was of Rs 177 crores which had to be paid to the government," it said.

The company said it started making payments towards the liability right from March 2013 every month and had paid about Rs 20 crores during the pendency of the application for instalments before the Sales Tax Department.