Essar files petition against tax order

Essar Oil has filed a petition with the Supreme Court seeking to review a judgment that prevents the company from deferring payment of a sales tax, Essar said.

Essar Oil has filed a petition with the Supreme Court seeking to review a judgment that prevents the company from deferring payment of a sales tax, Essar said.

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The petition seeks to review a ruling by India's top court in January that invalidated a judgment made by the Gujarat high court in 2008. The earlier high court ruling permitted the company to pay the sales tax in deferred instalments.

Essar Oil, 87% owned by London-listed Essar Energy, has deferred $1.24 billion under a tax benefit provided by the government of India's western state of Gujarat, where the company's Vadinar refinery is located.

Essar Energy lost around a quarter of its market value in a single session after the January ruling.

Shares in Essar Oil extended gains after the announcement on Thursday, the shares closed at Rs 68.1, up 2.3%.