Essar Oil shares dipped 3% on Tuesday on the Bombay Stock Exchange after the company said that the Gujarat High Court did not accept its plea for direction on repayment of sales tax to the Gujarat government amounting to nearly R6,300 crore.
In a communication to the stock exchanges, Essar Oil said that a hearing in relation to its writ petition took place in the High Court of Gujarat on Monday and ?the petition has not been favourably considered by the high court?.
It planned to take ?appropriate actions?, including appealing the decision before the Supreme Court, once it received the order, Essar Oil said.
Parent Essar Energy, which is moving to a financial year ending March, had said on Monday that for the 15-month period ending March 2012, it made a loss after tax of $764 million, as it was impacted by the Supreme Court order, which set aside an earlier Gujarat High Court ruling that enabled its arm Essar Oil to benefit from a sales tax deferment scheme.
Essar Oil had on May 7 filed a writ petition in the Gujarat High Court to seek direction on the repayment installments and interest in relation to its sales tax deferral liability to the government of Gujarat.
Essar Energy had said Monday that it is now in talks with Indian lenders regarding a new debt facility of approximately $1 billion to meet the sales tax liability, it said.
