The state government of Gujarat has ordered the attaching of Essar Oil Ltd's accounts even as the company affirmed in an earlier statement that it has agreed to pay Rs 1,000 crore within 30 days to the Gujarat Government towards the sales tax liability.
Essar Oil said after the attaching of the accounts that it is "surprised and disappointed" by the State Government's "unexpected step" even after the company assured that it will pay the specified amount soon. The company has requested a formation of a committee to jointly discuss the ways of the payment of the balance principal amount of Rs 5,169 crore and also consider a remission of the past interest of Rs 1,932 crore.
According to company officials, the company sales tax deferment benefit under the scheme was about Rs 9,100 crore and it has utilized close to Rs6,300 crore. Thus, the company might have to repay the amount as per the schedule that will be prepared after discussions with the state government of Gujarat.
The company has written to the authorities to work out an amicable payment schedule after it lost eth case in the Supreme Court on the sales tax scheme.
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