Escorts Kubota Faces Rs 14 Crore Demand and Penalty from Customs Authority

Farm equipment and construction equipment firm Escorts Kubota Ltd has received a demand and penalty of over Rs 14 crore from the customs authority. The company intends to challenge the demand and penalty, and has also been issued a separate penalty by the Deputy Commissioner of State Tax, Bihar.

Farm equipment and construction equipment firm, Escorts Kubota Ltd, announced on Tuesday that it has received a demand and penalty of over Rs 14 crore from the customs authority, a decision the company plans to contest.

The Commissioner of Customs (Adjudication), Delhi Zone has ordered the company to pay Rs 4.42 crore along with applicable interest and imposed an additional penalty of Rs 9.87 crore due to valuation issues on imported goods, as disclosed by Escorts Kubota in a regulatory filing.

Additionally, the company revealed that the Deputy Commissioner of State Tax, Bihar has confirmed a penalty of Rs 3.74 lakh concerning the computation of turnover, disallowance of discounts, and sales return. The department has adjusted Rs 2.88 lakh against the declared penalty.

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