State-owned Bharat Petroleum Corporation Ltd (BPCL) on Monday said that it has received an order from the Commissioner of Central Tax and Central Excise, Kochi, confirming a total demand of ₹1,816.65 crore.
According to the regulatory filing the total financial implication of ₹1,816.65 crore comprises duty of ₹476.94 crore, applicable interest of approximately ₹1,339.70 crore up to date, and a penalty of ₹95,000.
The order covers the period from September 2004 to May 2010 and relates to 19 show cause notices pending adjudication under the Central Excise law.
The adjudicating authority has confirmed a demand of ₹476.94 crore. The major portion of the demand pertains to the pre-merger period of Kochi Refineries Limited (KRL), from September 2004 to August 2006, which was pending adjudication.
The regulatory filing stated, the authority held that BPCL and KRL were related parties and that the refinery gate price could not be used for excise valuation. The department applied valuation on the basis of the highest price for the entire fortnight across all clearances, rather than the pricing methodology used by BPCL.
BPCL said it will analyse the order and file an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).
