Essar Oil's accounts de-frozen
Jul 31 2012, 14:17 | By PTI
Essar Oil Ltd today said Gujarat government has de-frozen its bank accounts after it paid Rs 1,000 crore in sales tax dues.
"Essar Oil Ltd today has been informed by the office of Assistant Commissioner of Commercial Tax, Jam Khambaliya, Gujarat, of release of the bank accounts frozen on July 9, 2012," the company said in a press statement here.
The Supreme Court had in January said Essar Oil was not entitled to defer payment of sales tax, an incentive offered by the Gujarat government for the company to start production at its Vadinar refinery in the state by August 15, 2003.
Since the deadline was missed, the company lost right to defer sales tax payment by 17 years and was ordered to pay Rs 6,169 crore in dues.
To recover dues, the Gujarat government had on July 9 attached three bank accounts of Essar Oil in Jamnagar. There after the company approached the Supreme Court which asked Essar Oil to deposit Rs 1,000 crore out of the sales tax dues by July 31.
"Essar Oil has complied with the Supreme Court direction and deposited Rs 1,000 crore with the state government," it said. "As per the order, the bank accounts have been rendered operational with immediate effect".
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