News

BPCL receives tax order worth ₹1,817 crore from Kochi Central Excise authorityShares of Bharat Petroleum Corporation Ltd ended at ₹372.55, up by ₹6.70, or 1.83%, on the BSE.By Jomy Jos Pullokaran  February 23, 2026, 4:56:52 PM IST (Published)2 Min ReadState-owned refiner Bharat Petroleum Corporation Ltd (BPCL) on Monday (February 23) said it has received an order from the Commissioner of Central Tax and Central Excise, Kochi, confirming a total excise demand of ₹1,816.65 crore.

The order has been passed by the Adjudicating Authority (AA), and BPCL said it will analyse the order and file an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The matter relates to 19 show cause notices (SCNs) pending adjudication under the Central Excise law for the period from September 2004 to May 2010.

The total expected financial implication is ₹1,816.65 crore. This comprises excise duty of ₹476.94 crore, applicable interest up to date of approximately ₹1,339.70 crore, and a penalty of ₹95,000. The major portion of the demand pertains to the pre-merger period of Kochi Refineries Limited from September 2004 to August 2006, which was pending adjudication before the Central Excise department.

Also Read: HPCL, BPCL, IOC shares down 1% as Brent crude tops $72 amid US-Iran tensions

The Adjudicating Authority ruled that BPCL and KRL were related parties and that the Refinery Gate Price could not be used for excise valuation. The department’s valuation under Rule 11 read with Rule 9 of the Central Excise Valuation Rules, 2000, was held valid.

For the post-merger period, BPCL – Kochi Refinery applied Rule 7 of the Central Excise Valuation Rules, 2000 (highest-quantity depot price). The department, however, applied the highest value of the entire fortnight to all clearances under Rule 11 read with Rule 7 of the said Rules.

BPCL confirmed that it will analyse the order and proceed with filing an appeal before CESTAT. Shares of Bharat Petroleum Corporation Ltd ended at ₹372.55, up by ₹6.70, or 1.83%, on the BSE.

Also Read: BPCL Q3 profit, revenue, EBITDA beat estimates, margins steady QoQContinue Reading(Edited by : Jomy Jos Pullokaran)TagsBharat Petroleum Corporationshare market today