Essar considers appeal over tax

Essar Energy said yesterday that it is likely to appeal against a ruling by India's Supreme Court, which said that the company will no longer be able to defer payment of a sales tax at its oil business, having so far benefited from deferrals of $1.24bn (£800m). The firm also said its Essar Oil subsidary needs “to obtain approval of the deferment of the sales tax” by March, or it could default on part of its restructuring plan. Shares in Essar Energy plunged as much as 38 per cent on Tuesday before clawing back some ground. The firm yesterday bounced back from an all-time share price low to close up 7.2 per cent.