Mumbai: Essar Oil Ltd said on Wednesday that it would try to hold a dialogue with the Gujarat government on a repayment schedule related to a deferment of sales tax.
The company will also consider filing a review petition in the Supreme Court should the talks fail. The apex court had ruled that Essar can no longer defer payments of sales tax.
The quantum of sales tax deferment benefit is estimated to be around Rs 9,100 crore. Against this, Essar Oil has used about Rs6,300 crore as benefit under the sales tax deferment scheme.
As of 31 December, the sales tax deferment liability was Rs1,800 crore, Essar Oil said in a statement.
The company’s management in a conference call reiterated that it had enough cash flows to meet the repayment schedule and does not need to access external capital.
Essar Oil’s shares closed 11.5% lower at Rs51.40 each on the Bombay Stock Exchange on Wednesday, underperforming the Sensex’s flat closing.