HomeMarket NewsStocks NewsIOC, HPCL shares fall after GST Intelligence books cases for tax evasion

IOC, HPCL shares fall after GST Intelligence books cases for tax evasion

Shares of oil marketing companies (OMCs) were trading lower with IOC and HPCL down over 1 percent each after sources told CNBC-TV18 that DG GST Intelligence has booked cases against IOC and HPCL for evasion of Central excise duties.

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By CNBC-TV18 June 4, 2019, 11:23:42 AM IST (Published)

IOC, HPCL shares fall after GST Intelligence books cases for tax evasion
Shares of oil marketing companies (OMCs) were trading lower on Tuesday, with Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation (HPCL) down over 1 percent each after CNBC-TV18
reported that DG GST Intelligence has booked case
against IOC and HPCL for evasion of Central excise duties.

IOC shares fell as much as 1.2 percent to day's low of Rs 167.55 per share on BSE, while HPCL slipped 2.2 percent to Rs 317.10 per share.

At 10:50 AM IOC was trading 0.8 percent lower at Rs 167.8, while HPCL was 0.7 percent lower at Rs 322 per share. In comparison, BSE Sensex was 0.23 percent (90 points) lower at 40,176.

DG GST Intelligence (Pune) booked a case against IOC for alleged evasion of Rs 4,000 crore in Central excise duties with respect to non-payment of duty on sales of Ethanol-blended motor spirit.

Meanwhile, DG GST Intelligence (Vishakapatnam) booked a case against HPCL for an alleged evasion of Rs 346 crore in Central excise involving the transfer of petrol, diesel, kerosene via Vizag-Vijayawad-Secundrabad Pipeline (VVSPL).

The GST Intelligence alleges that both the companies have evaded central excise duties despite the law being clear.  However, sources said that there could be some anomaly in the law and, in the long run, the government might look to clarify but as of now both are clear cases of tax evasion.

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