ONGC has received an order for a ₹60.19 lakh excise duty demand, including interest and penalties, related to clearances made in July 2022. The demand disputes exemptions claimed on Special Additional Excise Duty (SAED) for production by a contractor. ONGC intends to appeal the order, but believes that the impact is not considered significant.
Excise Duty Order Received
ONGC has received an order from the Additional Commissioner Central Tax, Vijayawada GST Division, raising a demand for Special Additional Excise Duty (SAED) amounting to ₹60,19,053.
Details of the Demand
The demand pertains to clearances made during July 2022. Specifically, the issues relate to:
- Demand of Special Additional Excise Duty (SAED) of ₹60,19,053 on clearances effected in July 2022.
- Denial of exemption claimed from payment of SAED in terms of Notification No. 06/2022-CE dated 30.06.2022, relating to quantity produced by a Production Enhancement Contractor.
- Imposition of interest at applicable rates.
- A penalty of ₹60,19,053 has also been imposed.
Company’s Stand and Next Steps
ONGC has already paid SAED amounting to ₹42,11,673 and believes the remaining quantity qualifies for exemption. ONGC intends to appeal the order, stating the impact of the order is not considered significant.
Source: BSE