New Delhi, Feb 24: Downstream oil marketing major Bharat Petroleum Corporation Limited (BPCL) has received a tax demand order amounting to Rs 1,816.65 crore from the Commissioner of Central Tax and Central Excise, Kochi, the state-run company disclosed in a regulatory filing on Monday.
According to the filing with BSE Limited, the demand comprises Rs 476.94 crore towards excise duty, Rs 1,339.70 crore in applicable interest, and a penalty of Rs 95,000.
BPCL stated that it will examine the order in detail and intends to file an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).
The litigation relates to 19 Show Cause Notices (SCNs) issued under the Central Excise law for the period between September 2004 and May 2010, which had been pending adjudication. The Adjudicating Authority issued its ruling through an order dated February 21, 2026.
The company clarified that a substantial portion of the confirmed demand pertains to the pre-merger period of Kochi Refineries Ltd (KRL), specifically from September 2004 to August 2006.
As per the order, the Adjudicating Authority held that BPCL and KRL were related parties and therefore the Refinery Gate Price could not be adopted for excise valuation. The department’s valuation under Rule 11 read with Rule 9 of the Central Excise Valuation Rules, 2000 was upheld.
