The Supreme Court on Monday refused to grant more time to the Essar Oil Ltd for paying outstanding sales tax dues to Gujarat after the state government opposed the companys plea.
We could have done something but the state government is not agreeing, said a bench of Justices AK Patnaik and JS Khehar. The bench also rejected the submission of senior advocate Mukul Rohatgi,appearing for Essar Oil Ltd,that the hearing be adjourned for four weeks.
It would be a catastrophe. There are nearly 10,000 employees working in the refinery. This is the only refinery in the country which has not received any incentive or concession, said Rohatgi while referring to a newspaper report that the oil firm had not been given any concession or benefit as accorded to other companies by Rajasthan government.
Senior advocate Parag Tripathi,appearing for Gujarat government,said that he was not agreeable to any extension of time to the oil firm.
Essar Oil had moved the court last month,seeking more time for paying outstanding sales tax dues to Gujarat government on the ground that it was facing financial constraints due to economic slowdown and was not given tax benefits unlike other refineries.
Essar Oil had said the state government may be asked not to take coercive steps,like locking down the Vadinar refinery.