Escorts Kubota Limited receives adverse tax ruling on service tax demand from CGST Commissionerate
Escorts Kubota Limited has received an order regarding its Service Tax demands and penalties from the Superintendent (Adjudication) of the CGST Commissionerate in Faridabad, Haryana. The ruling resulted in the dropping of a certain tax demand while confirming another related to taxability issues on specific transactions.The order, which was received on August 14, 2026, detailed the outcome of the assessment regarding Service Tax and penalties under the Finance Act, 1994.
According to the ruling, the Superintendent (Adjudication) decided to drop a Service Tax Demand (including Education Cess) amounting to Rs. 1,55,93,215/-. This dropped demand pertains to the period between 2007-08 and 2013-14, along with associated penalties under Section 76, 77, and 78 of the Finance Act, 1994.
However, the order also confirmed a Service tax demand amounting to Rs. 8,25,59,276/-, which includes Education Cess. This confirmed amount is related to taxability issues concerning certain transactions. The ruling specifies that this demand comes along with applicable interest and a penalty of Rs. 8,25,60,276/-.
The financial details of the outcome are summarized below:
| Financial Outcome | Dropped Demand (Service Tax & Penalty) | Confirmed Tax Demand (Including Education Cess) | Total Penalty on Confirmed Issues |
|---|---|---|---|
| Amount | Rs. 1,55,93,215/- | Rs. 8,25,59,276/- | Rs. 8,25,60,276/- |
Escorts Kubota Limited intends to appeal the confirmed demand before the appellate authority.
ESCORTS Stock Price Movement
On Friday, Escorts Kubota Limited shares edged higher to close at ₹3113.70 after gaining 0.57% on the day. The stock saw a total traded volume of 33,698 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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