Escorts Kubota Limited has received an order from the State Tax Officer, Central Mobile Squad, Ahmedabad, imposing a penalty of ₹11,32,740. The penalty pertains to the detention of goods in transit due to a lack of sufficient supporting documentation. The company has officially stated its intention to contest this decision by filing an appeal before the relevant appellate authority.
Details of the Tax Order
The penalty, amounting to ₹11,32,740, was issued by the State Tax Officer in Ahmedabad, Gujarat. The enforcement action occurred on May 19, 2026, following the detention of goods being transported by the company. The regulatory authority cited the absence of necessary supporting paperwork as the primary reason for the imposition of the fine.
Company Response and Next Steps
In response to the order, Escorts Kubota Limited has initiated the process to seek legal recourse. The company plans to approach the higher appellate authority to challenge the validity of the penalty. The financial impact of this matter is currently limited to the ₹11,32,740 penalty amount, and the company is moving forward with the formal appeals process to resolve the discrepancy.
Source: BSE
