New Delhi: Oil and Natural Gas Corporation Limited (ONGC) has received an order from the Commissioner of CGST & Central Excise, Surat, regarding Special Additional Excise Duty (SAED) for the period 1 July 2022 to 31 July 2023. The demand concerns the 10% Participating Interest (PI) of M/s Invenire Petrodyne Ltd in the Pre-NELP Block CB-OS02 joint venture.
The total excise duty demand has been assessed at ₹26.76 crore, with a matching penalty of ₹26.76 crore, along with applicable interest.
ONGC Clarifies Position
ONGC clarified that the SAED for its 50% PI in the block, as well as the 40% held by the operator, M/s Vedanta Ltd, has already been duly paid. The order pertains solely to the 10% PI of Invenire Petrodyne Ltd.
Since ONGC is a non-operator in this block, the company maintains that it does not qualify as a “manufacturer” under Central Excise law and, therefore, cannot be held liable for the payment of SAED, interest, or penalty related to Invenire Petrodyne’s stake.
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Appeal to Be Filed
The company stated that the order is currently under review, and an appeal will be filed with the appropriate appellate authority within the stipulated timeline. ONGC emphasized that the order will have no significant impact on the company’s financials or operations, given its large-scale operations and strong financial position.
About ONGC
Oil and Natural Gas Corporation Limited (ONGC) is India’s largest crude oil and natural gas exploration and production company. A Maharatna Central Public Sector Enterprise under the Ministry of Petroleum and Natural Gas, ONGC plays a key role in ensuring the country’s energy security while actively contributing to social development through impactful CSR initiatives across education, health, environment, and community welfare.
