BPCL To Appeal Rs 18.17 bn Excise Demand
ECONOMY & POLICY

BPCL To Appeal Rs 18.17 bn Excise Demand

State-run refiner Bharat Petroleum Corporation Limited (BPCL) has received an excise duty demand of Rs 1,816.65 crore, equal to 18,166.5 million (mn) or 18.17 billion (bn), from the Commissioner of Central Tax and Central Excise, Kochi, over valuation disputes at its Kochi refinery. The order, dated 21 February 2026, covers transactions from September 2004 to May 2010. The company disclosed the receipt of the order and said it will challenge the demand.

The demand comprises excise duty of Rs 476.94 crore, interest of Rs 1,339.70 crore and a penalty of Rs 95,000, which correspond to 4,769.4 million (mn) or 4.77 billion (bn) and 13,397.0 million (mn) or 13.40 billion (bn) for the tax and interest components respectively. The penalty is administrative and small compared with the tax and interest.

The demand arises from 19 show cause notices under the Central Excise Valuation Rules, 2000, relating to Kochi Refineries Limited, later merged with BPCL. The adjudicating authority held that BPCL and Kochi Refineries Limited were related persons and disallowed the transaction value adopted by the company, applying valuation on the basis of the highest fortnight price across clearances rather than BPCL's method. BPCL had used the highest quantity depot price after the merger, which the authority rejected.

BPCL said it will analyse the order and file an appeal before the Customs, Excise and Service Tax Appellate Tribunal and did not disclose any provision in its accounts or a timeline for the appeal. The matter will proceed through the appellate process and the outcome may affect the company, including potential accounting adjustments, investor sentiment and regulatory scrutiny. The company will pursue legal channels to seek a resolution and will continue to monitor developments.

State-run refiner Bharat Petroleum Corporation Limited (BPCL) has received an excise duty demand of Rs 1,816.65 crore, equal to 18,166.5 million (mn) or 18.17 billion (bn), from the Commissioner of Central Tax and Central Excise, Kochi, over valuation disputes at its Kochi refinery. The order, dated 21 February 2026, covers transactions from September 2004 to May 2010. The company disclosed the receipt of the order and said it will challenge the demand. The demand comprises excise duty of Rs 476.94 crore, interest of Rs 1,339.70 crore and a penalty of Rs 95,000, which correspond to 4,769.4 million (mn) or 4.77 billion (bn) and 13,397.0 million (mn) or 13.40 billion (bn) for the tax and interest components respectively. The penalty is administrative and small compared with the tax and interest. The demand arises from 19 show cause notices under the Central Excise Valuation Rules, 2000, relating to Kochi Refineries Limited, later merged with BPCL. The adjudicating authority held that BPCL and Kochi Refineries Limited were related persons and disallowed the transaction value adopted by the company, applying valuation on the basis of the highest fortnight price across clearances rather than BPCL's method. BPCL had used the highest quantity depot price after the merger, which the authority rejected. BPCL said it will analyse the order and file an appeal before the Customs, Excise and Service Tax Appellate Tribunal and did not disclose any provision in its accounts or a timeline for the appeal. The matter will proceed through the appellate process and the outcome may affect the company, including potential accounting adjustments, investor sentiment and regulatory scrutiny. The company will pursue legal channels to seek a resolution and will continue to monitor developments.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code