Legal23 Feb 2026, 04:37 pm
BPCL Faces Rs. 1,816.65 Crores Excise Duty Demand from Central Tax Commissioner
AI Summary
Bharat Petroleum Corporation Ltd. (BPCL) has received an order from the Commissioner of Central Tax and Central Excise, Kochi, dated 21st February 2026, demanding Rs. 1,816.65 Crores as excise duty, interest, and penalty. The dispute pertains to 19 Show Cause Notices (SCNs) pending for adjudication by the central excise department from September 2004 to May 2010. The Adjudicating Authority (AA) ruled that BPCL and Kochi Refineries Limited (KRL) were related parties, and the department's valuation under Central Excise Valuation Rules, 2000, is valid. BPCL will analyze and file an appeal against the order to the Hon’ble CESTAT.
Key Highlights
- BPCL received an order from the Commissioner of Central Tax and Central Excise, Kochi, demanding Rs. 1,816.65 Crores as excise duty, interest, and penalty.
- The dispute pertains to 19 Show Cause Notices (SCNs) pending for adjudication by the central excise department from September 2004 to May 2010.
- The AA ruled that BPCL and KRL were related parties, and the department's valuation under Central Excise Valuation Rules, 2000, is valid.
- The major demand confirmed pertains to the pre-merger period of Kochi Refineries Limited (KRL) i.e. from September 2004 to August 2006.
- BPCL will analyze and file an appeal against the order to the Hon’ble CESTAT.