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Essar Files Petition Against Tax Order

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Essar Oil has filed a petition in the Supreme Court seeking to review a judgment that prevents the company from deferring payment of a sales tax, Essar said.

The petition seeks to review a ruling by India's top court in January that invalidated a judgment made by the Gujarat High Court in 2008. The earlier high court ruling permitted the company to pay the sales tax in deferred instalments.

Essar Oil, 87 per cent owned by London-listed Essar Energy, has deferred Rs 6,100.80 crore under a tax benefit provided by the government of Gujarat, where the company's Vadinar refinery is located.

Essar Energy lost around a quarter of its market value in a single session after the January ruling.

Shares in Essar Oil extended gains after the announcement on Thursday, rising as much as 3.3 per cent in a Mumbai market down 0.8 per cent.

(Reuters)