ONGC faces tax demand, plans appeal

ONGC has received an order dated October 6, 2025, from the Additional Commissioner Central Tax, Vijayawada GST Division, regarding a demand for special additional excise duty (SAED). The demand totals INR 60,19,053 related to clearances in July 2022, along with interest and a penalty of INR 60,19,053, as per the Central Excise Act, 1944. The order also denies an exemption claimed by ONGC for the quantity produced by its Production Enhancement Contractor.

ONGC Rajahmundry Asset is contesting the demand, asserting that the duty amount has already been paid and that the exemption claimed is valid based on judicial pronouncements. The company views the demand as unsustainable, arguing that there was no short payment of duty, suppression, or intent to evade.

The company plans to review the order in detail and file an appeal with the appropriate appellate authorities within the statutory time limits. ONGC has stated that, considering the size and scale of its operations, the impact of this order is not considered significant.