Overview
- The Commissioner of Central Tax and Central Excise, Kochi, issued a consolidated order dated February 21, 2026, raising a total demand of ₹1,816.65 crore.
- The amount comprises excise duty of ₹476.94 crore, interest of about ₹1,339.70 crore, and a penalty of ₹95,000.
- The order resolves 19 show‑cause notices covering September 2004 to May 2010, with a significant share linked to Kochi Refineries Ltd before its merger with BPCL between September 2004 and August 2006.
- The adjudicating authority treated BPCL and KRL as related parties, rejected the Refinery Gate Price, and upheld a higher fortnight‑based valuation over BPCL’s chosen methodology under the Central Excise Valuation Rules, 2000.
- BPCL said it will appeal to the Customs, Excise and Service Tax Appellate Tribunal and did not indicate any provisioning or an appeal timeline in its disclosure, while its shares closed 1.83% higher at ₹372.55 on the disclosure day.