Date: August 14, 2026
Regulatory & Legal Update
Escorts Kubota Limited has received an order from the Superintendent (Adjudication), CGST Commissionerate, Faridabad Haryana, dated August 11, 2026, which was received by the company on August 14, 2026 at 04:24 PM (IST).
The order has two primary components:
Favorable Outcome:
- Drops Service Tax Demand (including Education Cess) of ₹1,55,93,215 (₹1.56 crore) for the period 2007-08 to 2013-14
- Drops penalty under Section 76, 77 and 78 of the Finance Act, 1994 related to this demand
Unfavorable Outcome:
- Confirms Service Tax Demand of ₹8,25,59,276 (₹8.26 crore) including Education Cess for the same period (2007-08 to 2013-14)
- Confirms applicable interest on the above demand
- Imposes penalty of ₹8,25,60,276 (₹8.26 crore)
- The demands and penalties relate to taxability issues on certain transactions
Company Response:
The Company intends to file an appeal before the appellate authority against the confirmed demands and penalties.
Regulatory Compliance:
Financial Impact:
The quantifiable monetary impact includes the confirmed service tax demand of ₹8.26 crore, applicable interest, and penalty of ₹8.26 crore, totaling approximately ₹16.51 crore plus interest charges.