Mumbai: Bharat Petroleum Corporation Limited (BPCL) has received an excise demand order of Rs 1,816.65 crore from the Commissioner of Central Tax and Central Excise, Kochi. The company disclosed this development on Monday.
The total demand includes Rs 476.94 crore towards excise duty. In addition, the order includes interest of Rs 1,339.70 crore and a penalty of Rs 95,000.
What Is the Dispute About?
BPCL said the case relates to 19 Show Cause Notices (SCNs) that were pending for adjudication under the Central Excise law. These notices were linked to the “transaction value” used for calculating excise duty.
The Adjudicating Authority has now passed a consolidated order dated February 21, 2026, resolving these long-pending notices.
Pre-Merger Period of Kochi Refineries
Out of the total demand, BPCL has confirmed the excise duty amount of Rs 476.94 crore. This portion relates to the pre-merger period of Kochi Refineries Limited (KRL), covering September 2004 to August 2006.
Kochi Refineries Limited was later merged with BPCL. The dispute therefore relates to transactions that took place before the merger.
Company To File Appeal
BPCL stated that it will carefully review the order. The company plans to file an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).
The appeal process will determine whether the demand and interest calculations stand or are revised.
What This Means
While the order involves a significant financial amount, BPCL has indicated that it will challenge the decision through legal channels. The final outcome will depend on the tribunal’s ruling after examining the facts and legal interpretation of the excise provisions.
