Mangalore Refinery & Petroleum secured a favorable ruling from the Karnataka High Court, which dismissed the tax department's appeal against a previous tribunal order regarding a ₹173.77 crore CENVAT credit dispute.

The court order, received on October 1, 2026, validates the company's entitlement to CENVAT credits on capital goods used in manufacturing plant and machinery embedded in the earth. The dispute originated from the department's denial of these credits on the grounds that such machinery constituted immovable property.

Dispute Timeline and Financial Impact

The litigation pertained to the period from April 2010 to December 2014. The total amount in contention was ₹1,73,76,67,082, inclusive of applicable interest and penalties. The High Court dismissed Appeal No. CEA 34/2024, thereby upholding the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Bengaluru Order No. 20249/2024.

Regulatory Disclosure and Next Steps

Mangalore Refinery & Petroleum disclosed the event under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company stated that no further action is required as the favorable CESTAT order had already negated any existing demand.

The filing confirmed there are no aberrations, non-compliances, penalties, or sanctions imposed pursuant to this communication. The legal victory concludes a multi-year regulatory challenge concerning the classification of embedded plant and machinery for indirect tax purposes.

What the Numbers Show

The dismissal of the appeal confirms that the financial liability of ₹173.77 crore remains extinguished for MRPL. Since the CESTAT order had previously ruled in favor of the company, the High Court's decision does not result in an immediate cash inflow but rather provides finality to the contingent liability disclosure for the April 2010 to December 2014 period.

Mangalore Refinery and Petrochemicals Limited announced financial support of approximately ₹1.20 crore for the family of Shri Manish Karkada, who died in the fire incident at its Coker Hydrotreater Unit (CHTU) on September 30, 2026.

The company confirmed that one individual sustained fatal injuries in the initial report, correcting earlier statements of minor injuries. MRPL expressed profound grief and extended heartfelt condolences to the bereaved family. The total support package includes an ex-gratia payment of ₹90 lakh from the company, along with benefits under Group Term Life Insurance (GTLI) and Workmen Compensation Policy (WCP).

Financial support breakdown

While acknowledging that no financial assistance can compensate for the loss of life, MRPL detailed the composition of the support package. The company will provide a direct ex-gratia amount of ₹90 lakh. Additionally, the family is eligible for benefits of approximately ₹10 lakh under the GTLI scheme and ₹20 lakh under the WCP.

Regarding Mediclaim insurance for the secondary workforce, MRPL stated that a proposal is being drafted. This arrangement is under discussion with the Member of Parliament for Dakshina Kannada and the District Collector. The company expects the process to be completed within approximately four weeks.

Incident details and safety status

The primary cause of the incident was identified as the rupture of the Cold Separator operating at high pressure within the CHT unit. This equipment is critical in refining processes for separating gas and liquid phases under pressure. The incident occurred around noon at the Mangaluru facility on September 30, 2026.

MRPL stated that the battery limits of the affected unit were isolated immediately, and emergency response teams engaged to control the blaze. The company clarified that the fire has been brought under control, though firefighting operations may continue for some time to ensure safe handling of the situation. The safety of personnel and the facility remains the highest priority, with the situation being closely monitored.

Operational context

As an Oil and Natural Gas Corporation (ONGC) subsidiary and a Schedule 'A' Government of India enterprise, MRPL operates a significant refining capacity. The CHT unit is integral to processing heavier fractions into lighter, more valuable products. While the immediate operational impact on total throughput is not quantified in the press release, the isolation of battery limits suggests a localized shutdown of that specific processing train.

The company issued a statement assuring the public that there is "absolutely no reason to panic" for individuals within or outside the MRPL premises. Further verified information regarding the extent of damage and timeline for resumption of operations will be shared as it becomes available. MRPL reiterated its commitment to the safety, health, and welfare of all personnel associated with its operations.