SC seeks Essar Steel’s response on ‘deliberate diversion’ of natural gas and naptha

The Gujarat government has alleged that Essar Steel had deliberately diverted natural gas and naptha to its sister concern Essar Power for generation of electricity


The Gujarat government alleged that the diversion was done for ‘gaining monetary advantage’ and was a breach of the condition stipulated under the exemption certificate granted to Essar Steel, which meant the company owed taxes and penalties totalling Rs480 crore.
The Gujarat government alleged that the diversion was done for ‘gaining monetary advantage’ and was a breach of the condition stipulated under the exemption certificate granted to Essar Steel, which meant the company owed taxes and penalties totalling Rs480 crore.

New Delhi: The Supreme Court on Thursday sought Essar Steel Ltd’s response on the Gujarat government’s allegation of “deliberate diversion” of natural gas and naptha to Essar Power Ltd for generation of electricity and demanded tax of Rs. 480 crore.

The matter was brought before a bench comprising Madan Lokur and R.K Agrawal who said that the matter would be listed after pleadings were completed.

In its plea to the apex court, the Gujarat government alleged that Essar Steel Ltd had deliberately diverted natural gas and naptha to its sister concern Essar Power Ltd for generation of electricity.

The government alleged that the diversion was done for “gaining monetary advantage” and was a breach of the condition stipulated under the exemption certificate granted to Essar Steel, which meant the company owed taxes and penalties totalling Rs. 480 crore.

In May, the Gujarat high court dismissed the state government’s appeal and upheld a 2014 order of the Gujarat Value Added Tax Tribunal which had given a clean chit to the company.

Sponsored Links by Revcontent