IOC, HPCL to contest over ₹4,000-crore tax demand
New Delhi: Oil refiners Indian Oil Corp (IOC) and Hindustan Petroleum Corp Ltd (HPCL) on Thursday said they will contest tax authorities demand for over ₹4,000 crore in excise duty on ethanol used for doping petrol, saying the sugarcane extract for mixing in fuel is exempt from tax.
The Director-General of GST in Pune has slapped IOC, the country’s biggest oil firm, with a tax demand of ₹4,002 crore for alleged non-payment of excise duty on ethanol mixed in petrol. HPCL has been asked to pay over ₹346 crore.
In a regulatory filing, IOC said it is a responsible corporate and law abiding entity, which is one of the largest contributors to the national exchequer in the form of duties and taxes. During 2018-19, it paid ₹1.93 lakh crore to the exchequer in the form of duties and taxes.
