BPCL Share Price in Focus; Receives ₹1,816.65 Crore Tax Demand from Central Excise Department

On February 23, 2026, Bharat Petroleum Corporation Limited has informed stock exchanges about an order received from the Commissioner of Central Tax and Central Excise, Kochi. The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. 

BPCL Receives ₹1,816.65 Crore Tax Demand Order 

The Adjudicating Authority passed an order dated February 21, 2026, confirming a demand of ₹476.94 crore towards central excise duty. The total expected financial implication stands at ₹1,816.65 crore. This includes duty of ₹476.94 crore, applicable interest of approximately ₹1,339.70 crore up to date, and a penalty of ₹95,000. 

The matter relates to the period from September 2004 to May 2010. The company stated that it will file an appeal before the Customs, Excise and Service Tax Appellate Tribunal. 

Details of the Central Excise Dispute 

The dispute involves 19 Show Cause Notices that were pending adjudication by the central excise department. These notices were related to transaction value under the Central Excise law. The recent order adjudicated all 19 notices. 

A significant portion of the confirmed demand pertains to the pre merger period of Kochi Refineries Limited from September 2004 to August 2006. The authority held that BPCL and Kochi Refineries Limited were related parties. Therefore, the Refinery Gate Price was not accepted for excise valuation. 

Instead, the department applied valuation under Rule 11 read with Rule 9 of the Central Excise Valuation Rules, 2000. For the post merger period, the department applied Rule 11 read with Rule 7 of the Central Excise Valuation Rules, 2000, instead of the method used by BPCL. 

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Appeal Before CESTAT 

BPCL has stated that it will analyse the order and file an appeal before the Hon’ble Customs, Excise and Service Tax Appellate Tribunal. The company has formally communicated the development to both BSE and NSE. 

Bharat Petroleum Share Price Performance  

As of February 24, 2026, at 9:32 AM, Bharat Petroleum share price on NSE was trading at ₹372.70 up by 0.16% from the previous closing price. 

Conclusion 

The order dated February 21, 2026, confirms a total demand of ₹1,816.65 crore against BPCL for the period between September 2004 and May 2010. The company has indicated that it will challenge the order before the appellate tribunal in accordance with applicable legal provisions. 

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