Essar Oil Ltd said it has tied up a credit line with banks for Rs 5,000 crore to meet its sales tax liability of Rs 6,169 crore.

Essar said it continued to pursue the matter relating to repayment schedule of the tax liability both legally and with the state government.

Mr Lalit Gupta, MD & CEO, Essar Oil, said the new credit line would enable the company to meet its sales tax liability.

On July 17, Essar oil informed the exchanges that the Supreme Court, on the company’s petition on principle repayment schedule and waiver/remission of interest in the ST issue, had directed the company to pay Rs 1,000 crore to the Gujarat Government towards ST/VAT dues by July 30.

The company had offered to pay in its submission to the court. On remitting this amount, the “coercive steps already taken by the state’’ would be stayed, the company had said.

(This article was published on July 23, 2012)
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