SC rejects Essar Oil's sales tax plea

The bench also rejected the submission of senior advocate Mukul Rohatgi, appearing for Essar Oil, that the hearing be adjourned for four weeks

The Supreme Court on Monday dismissed plea from Essar Oil Limited seeking extension of time for paying outstanding sales tax dues to Gujarat state government.

“Supreme Court has not considered Essar Oil’s application on the Sales Tax matter. Essar Oil will follow the Supreme Court order,” Essar Oil said in a statement.

Essar Oil had approached the SC on October 7, to seek direction from the court on constituting an expert committee which would examine the company’s plea on extension of sales tax dues. The company has till date paid Rs 3,697 crore towards its sales tax liability, including interest, out of total sales tax dues of Rs 6,169 crore (excluding interest).

A bench of justices A K Patnaik and J S Khehar said, “We could have done something but the state government is not agreeing.”

The bench also rejected the submission of senior advocate Mukul Rohatgi, appearing for Essar Oil Ltd, that the hearing be adjourned for four weeks. Rohatgi cited a newspaper report to drive home the point that the oil firm has not been given any concession or benefit as accorded to other companies by Rajasthan government.

“It would be a catastrophe. There are nearly 10,000 employees working in the refinery. This is the only refinery in the country which has not received any incentive or concession,” Rohatgi said, adding that he was not seeking any rescheduling of repayment of outstanding sales tax dues. Essar Oil in its petition had claimed that it is facing a challenging operating environment.