Escorts Kubota Secures Resolution of Tax Dispute, Demand Dropped
Escorts Kubota Ltd. announced that the State Tax Officer in Chennai, Tamil Nadu, has dropped a tax demand of 46.79 Crores, including interest and penalty, related to the financial year 2019-20. The resolution follows prior notifications dated May 8, 2025, December 30, 2025, and January 30, 2026.The tax demand was initially raised through Show Cause Notices issued on May 7, 2025. The company contested the notices, arguing for the correct classification of agricultural tractors rather than road tractors, and for tax computation based on tractor turnover alone, rather than total GST turnover.
The State Tax Officer’s order, dated March 26, 2026, resolves all outstanding tax demands arising from the disputed notices. The event occurred on March 26, 2026, at 7:15 P.M. (IST).
Below is a summary of the resolution details:
| Particulars | Details |
|---|---|
| Entity Name | Escorts Kubota Limited |
| Opposing Party | State Tax Officer, Mandaveli Assessment Circle, Chennai, Tamil Nadu |
| Forum | Not applicable. Written objections were filed before the State Tax Officer, GST, Chennai, Tamil Nadu |
| Resolution Details | The State Tax Officer dropped a tax demand of Rs. 46.79 Crores along with interest & penalty for the Financial Year 2019-20. |
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