ONGC Faces Rs. 124.98 Cr Demand, Interest, and Penalty from Principal Commissioner of CGST & Central Excise, Mumbai South Commissionerate

Oil and Natural Gas Corporation Ltd (ONGC) has received an order from the Principal Commissioner of CGST & Central Excise, Mumbai South Commissionerate, demanding Rs. 124,98,40,817 in OID Cess, interest, and penalty. The demand is for the month of June 2023, alleging short payment of OID Cess. However, ONGC argues that the applicable OID Cess has been correctly remitted, as the Cess had been paid in excess earlier. The Company intends to review the order and file an appeal before the Central Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai within the stipulated time of 03 (three) months. The impact on the Company's operations is not considered significant due to its size and scale.