ONGC asked to pay ₹60 lakh as penalties for alleged discrepancy in excise duty payment of Rajahmundry asset

State-owned explorer Oil and Natural Gas Company (ONGC) informed Tuesday that the Vijayawada GST part has imposed a punishment of approx. ₹60 lakh successful lieu of their alleged underpayment of peculiar further excise work (SAED). This taxation request accrues to their Rajahmundry plus successful Andhra Pradesh and for clearances effected successful July 2022. It informed the exchanges that the institution would beryllium reviewing the bid and shall record an entreaty wrong the prescribed clip limits. Additionally, it stated considering the size and standard of their operation, the interaction “is not considered significant”.

Issues relating to non-reconciliation

The lipid explorer underlined the superior contented relates to non-reconciliation of the taxation request for the crude lipid it had produced and that of a abstracted accumulation enhancement contractor (PEC) during the period. For perspective, the second relates to agreements wherein the contractor is required to rise output and heighten betterment from depleting oregon mature lipid fields.

According to ONGC, it had already paid ₹42 lakh for the quantity it had produced itself and sought exemption of the approx. ₹18 lakh, for the quantity produced by the contractor, arsenic per applicable provisions backmost then. However, the state-owned explorer stated, the taxation authorities “disregarded the payment” made towards their ain accumulation underlining that the explorer paid it to a antithetic zonal part of the excise department. Thus, a lawsuit of non-reconciliation.

Additionally, the institution informed that the exemption payment excessively has been denied, treating ONGC arsenic the shaper for the quantity of the PEC arsenic well.

Describing the request arsenic “unsustainable”, it said, “There is neither immoderate abbreviated outgo of work nor immoderate suppression oregon intent to evade duty; hence, the request connected relationship of involvement and punishment is not sustainable.”

ONGC’s Rajahmundry Asset is dispersed crossed 4 districts of Andhra Pradesh, namely, Krishna, Dr. B.R. Ambedkar Konaseema, East Godavari & West Godavari.