Honourable Supreme Court passed a judgement in the Gujarat Sales Tax case, directing Essar Oil to pay the balance sales tax dues in instalments spread over two years. The balance dues of Rs 5,165 crore is now payable in eight quarterly instalments beginning Jan 2nd, 2013.
The demand of Gujarat State for around Rs 1,800 crore as interest for the period upto Jan 17th, 2012, has been dismissed by the Honourable Supreme Court.
On interest for the period beyond Jan 17th 2012, the Court directed the payment at the rate of only 10% p.a. against 18% p.a. demanded by the Gujarat State.
With this, the whole matter of Gujarat Sales Tax payment by Essar Oil has come to conclusion.