Hindustan Oil Exploration Receives Rs 65.81 Lakh GST Penalty Order, Plans Appeal
Hindustan Oil Exploration Company Limited received a GST penalty order of Rs 65,81,478/- from the Joint Commissioner (ST), Chengalpattu Intelligence Division on February 18, 2026, relating to alleged non-payment of GST on royalty for gas and condensate production in block PY-1 during 2019-2020. The company disputes the penalty, maintains no GST is applicable on such royalty payments, and plans to file an appeal with appellate authorities, expecting a favorable outcome with no material financial impact.
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Hindustan oil exploration Company Limited has disclosed receiving a GST penalty order worth Rs 65,81,478/- from tax authorities, which the company intends to challenge through an appeal process.
Penalty Details and Authority
The penalty order was issued by the Office of the Joint Commissioner (ST), Chengalpattu Intelligence Division, with the company receiving the order on February 18, 2026. The order imposes a penalty of Rs 65,81,478/- along with tax demand and applicable interest.
| Parameter: | Details |
|---|---|
| Issuing Authority: | Office of the Joint Commissioner (ST), Chengalpattu Intelligence Division |
| Penalty Amount: | Rs 65,81,478/- |
| Order Receipt Date: | February 18, 2026 |
| Additional Components: | Tax demand and applicable interest |
Nature of Alleged Violation
The penalty pertains to the alleged non-payment of GST on royalty paid to the Government of India for production of gas and condensate in block PY-1, Cauvery basin during the period 2019-2020. This relates to the company's upstream oil and gas operations in the specified block.
Company's Response and Position
Hindustan Oil Exploration has expressed disagreement with the penalty order, maintaining a clear stance on the matter. The company believes that no GST is applicable on royalty payments made for production of gas and condensate. Based on this position, the company has decided to contest the order through proper legal channels.
Appeal Process and Expected Impact
The company plans to file an appeal against the order with the appellate authorities. Management has expressed confidence in achieving a favorable outcome through the appeal process. The company has stated that it does not reasonably expect the order to have any material financial impact on its operations.
| Aspect: | Company's Position |
|---|---|
| Legal Stance: | No GST applicable on royalty for gas & condensate production |
| Planned Action: | Appeal to appellate authorities |
| Expected Outcome: | Favorable resolution |
| Financial Impact: | No material impact anticipated |
This disclosure was made pursuant to Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with stakeholders regarding regulatory matters affecting the company.
Historical Stock Returns for Hindustan Oil Exploration
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.13% | -13.36% | -9.69% | -16.60% | -32.07% | +52.58% |
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