HPCL, IOC stocks decline on reports of tax evasion

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Shares of Hindustan Petroleum Corporation ( HPCL) and Indian Oil Corporation ( IOC) fell up to 1 percent intraday on June 4 after reports made rounds that the Director General (DG) of Goods and Services Tax (GST) Intelligence has booked cases against the oil majors for evasion of excise duty.

According to a report in CNBC-TV18, DG GST Intelligence (Pune) registered a case against Indian Oil for non-payment of Rs 4,000 crore in excise duty on sales of ethanol-blended motor spirit.

In a similar case, DG GST Intelligence (Visakhapatnam) booked HPCL for alleged evasion of Rs 346 crore of central excise duty. Reports suggest that Hindustan Petroleum defaulted in payment on the transfer of petrol, diesel and kerosene to their Visakhapatnam-Vijayawada-Secunderabad pipeline (VVSPL).

Following the reports, HPCL has voluntarily started making payment and has already paid about Rs 5 crore thus far. The oil company has stated that it does not agree with the contentions stated in the notice.

At 1050 hours, IOC was quoting Rs 167.80, down 0.8 percent, while HPCL was quoting Rs 322.65, down 0.49 percent on the BSE.