Private refiners Reliance Industries Ltd and Essar Oil Ltd are competing with state refiners to sell diesel to Indian Railways, sources at the state refiners said, after the federal government`s control over diesel pricing ended last year.
Essar Oil Ltd on Friday moved the Supreme Court seeking more time for paying outstanding sales tax dues to Gujarat government on the ground that it is facing financial constraints due to economic slowdown and not given tax benefits unlike other refineries.
The division bench of Justice P B Majmudar and Justice Mohinder Pal rejected the petition of EOL which had sought that the company be allowed to pay the tax dues of Rs 6,414 cr in eight yearly instalments and grant it exemption from paying penalty and interest of Rs 2000 crore on it.
In a relief to Essar Oil Ltd, the Gujarat High Court on Friday asked the state government not to take coercive steps for recovery of 'sales tax deferral liability' from the company till further orders.
Essar Oil Ltd on Friday reported a Rs 3,986 crore net loss in the third quarter after a one-time reversal of sales tax revenue and said it will raise Rs 3,000 crore in fresh equity capital to shore up the networth.