Kirloskar Oil Engines has received an Adjudication Order regarding Goods & Services Tax, resulting in a significant reduction of tax demand, interest, and penalty. The order, dated December 12, 2025, partially favors the company following a Show Cause Notice from September 19, 2025. The initial demand has been substantially lowered due to a favorable ruling on miss-classification of outward supply.
Favorable Tax Adjudication
Kirloskar Oil Engines announced a positive development regarding its tax liabilities. An Adjudication Order received on December 12, 2025, resulted in a significant reduction of the previously demanded tax, interest, and penalty. The order relates to a Show Cause Notice issued on September 19, 2025.
Impact on Tax Liabilities
The Adjudication Order has led to the following changes in the demanded amounts:
- Penalty reduced from Rs. 76,47,755 to Rs. 40,321.
- Interest reduced from Rs. 3,20,37,279 to Rs. 1,79,243.
- Tax reduced from Rs. 4,05,52,111 to Rs. 2,15,706.
Reason for the Adjustment
The reduction in tax liability stems from a partial favorable ruling related to a dispute over miss-classification in outward supply. The company does not anticipate any material impact on its financial operations or other activities following this order.
Source: BSE