BPCL shares in focus after Rs 1,817 crore tax demand; company to appeal before CESTAT

Shares of Bharat Petroleum Corporation Ltd (BPCL) are likely to be in focus in Tuesday's trade after the state-run oil marketing company received a tax demand order of Rs 1,816.65 crore from the Commissioner of Central Tax and Central Excise, Kochi, according to a BSE filing.

In a post-market hours exchange filing on Monday, BPCL said the Adjudicating Authority passed the order on February 21, 2026.

The total financial implication of Rs 1,816.65 crore includes a duty demand of Rs 476.94 crore, applicable interest of about Rs 1,339.70 crore calculated to date and a penalty of Rs 95,000.

The company said the matter relates to 19 show cause notices issued by the Central Excise Department regarding the determination of transaction value under the Central Excise law for the period from September 2004 to May 2010.

BPCL noted that a significant portion of the confirmed demand pertains to the pre-merger period of Kochi Refineries Ltd (KRL), specifically between September 2004 and August 2006, which had been pending adjudication.

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

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

BPCL stated that it will examine the order in detail and file an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).