According to a regulatory filing made public on Monday, the state-run corporation Bharat Petroleum Corporation Limited (BPCL) received a tax demand notice from the Commissioner of Central Tax and Central Excise, Kochi, totalling Rs 1,816.65 crore. BPCL is a significant player in the downstream oil marketing sector.
There is a total of 4,76,94 crore rupees due in excise duty, 1,339.70 crore rupees in applicable interest, and 95,000 rupees in penalties, as stated in the filing with BSE Limited.
According to BPCL, they will carefully review the order and aim to appeal to the CESTAT.
This case concerns the resolution of nineteen pending Show Cause Notices (SCNs) issued under the Central Excise law from September 2004 to May 2010. By order dated February 21, 2026, the Adjudicating Authority rendered its verdict.
The majority of the confirmed demand, according to the company, dates back to the time before Kochi Refineries Ltd (KRL) merged with the other company, from September 2004 to August 2006.
Since BPCL and KRL were considered linked parties, the Adjudicating Authority ruled that the Refinery Gate Price should not be used for excise value. An assessment made by the department in accordance with the Central Excise Valuation Rules, 2000 (Rule 11 read with Rule 9) was confirmed.
