Essar Energy files petition against Indian tax ruling
The India oil subsidiary of energy giant Essar Energy has today filed a petition in the Supreme Court of India to review of the $1.235bn repayment of deferred sales tax.
The India oil subsidiary of energy giant Essar Energy has today filed a petition in the Supreme Court of India to review of the $1.235bn repayment of deferred sales tax.
The Indian Supreme Court ruled against the Gujarat High Court last month in letting Essar Oil pay sales tax in deferred instalments.
That announcement meant that the company would not be able to partake in this scheme going forward.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The Gujarat High Court in an earlier order had extended time to Essar Oil for commencing commercial production from the Vadinar Refinery, thus allowing the company to benefit from the state's Capital Investment Incentive to Premier/Prestigious Unit Scheme, 1995-2000, Essar said today. The Supreme Court however set aside this decision.
Under the original incentive scheme, the Vadinar Refinery was required to start commercial production by August 15th 2003, "but the actual commencement of commercial production was after this date," Essar admits.
Essar Oil had already made provision for the repayment of part of the liability which has been assigned to a third party.
Essar Energy owns an 87.1% stake in Essar Oil, which is listed on the Bombay Stock Exchange and the National Stock Exchange of India.
Shares had dropped 3.10% to 122p in early trading on Thursday.
BC
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
‘Inheritance tax insurance’ enquiries are soaring – but is it worth it?
Premiums for whole of life insurance can run to £5,000 a month to cover a £300,000 inheritance tax bill, with policies costing more the older you take them out.
-
MPs warn over Lifetime ISAs which could leave savers out of pocket
The Treasury Committee has highlighted confusion around the Lifetime ISA withdrawal charge, which risks consumers losing “a significant part of their savings”