REGULATORY · MARKET STRUCTURE · INDIA
BPCL hit with Rs 1,816.65 crore excise duty demand
Economic Times
23 Feb · 5:45 PM
Change
BPCL received an excise demand order totaling Rs 1,816.65 crore (duty, interest, and penalty) dated February 21, 2026 from the Central Tax and Central Excise Commissioner, Kochi.
Why it matters
The demand comprises Rs 476.94 crore of excise duty, Rs 1,339.70 crore of interest, and a Rs 95,000 penalty, shifting the matter from pending notices to an adjudicated order. BPCL stated it will appeal to CESTAT, moving the dispute into the appellate track with associated timing and outcome uncertainty. BPCL also stated it has confirmed the Rs 476.94 crore duty component, which relates to the pre-merger period of Kochi Refineries Limited (September 2004–August 2006). The interest component dominates the total, increasing the financial exposure even where the underlying duty is smaller. The order consolidates exposure across 19 notices related to transaction value under Central Excise law, potentially affecting accounting treatment and contingent liability disclosures.
Implications
- • Tax dispute shifts from SCNs to CESTAT appellate proceedings
- • Interest component (Rs 1,339.70 cr) drives most of exposure
- • Confirmed duty (Rs 476.94 cr) tied to legacy KRL period
- • Potential impact on contingent liability and financial disclosures
Who is affected
- • Bharat Petroleum Corporation Limited (BPCL) finance and legal teams
- • Central Tax and Central Excise Commissionerate, Kochi
- • Customs, Excise and Service Tax Appellate Tribunal (CESTAT)
- • Investors and lenders exposed to BPCL credit and disclosure risk
Source
Read full article on Economic Times →
Topics
Law & Public Safety Regulatory Actions Compliance Energy & Power Oil & Gas