Escorts Kubota Limited has informed the Exchange about update on Litigation.
ESCORTS · price
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On the reaction day the stock moved 1.0 pts more than Nifty Midcap 150 and 0.4 pts less than its Agricultural Commercial & Construction Vehicles peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Escorts Kubota had earlier received a Show Cause Notice from the GST department in Faridabad proposing to reject its refund claim of Rs. 7.48 crore under the Inverted Duty Structure. After the company contested the notice, the Assistant Commissioner has now sanctioned a refund of Rs. 3.70 crore but rejected the remaining Rs. 3.78 crore. The company intends to file an appeal against the rejected portion. This is a partial adverse outcome in a tax dispute related to accumulated Input Tax Credit (ITC).
Shareholders should note that roughly half of the claimed GST refund has been denied, representing a potential outflow of around Rs. 3.78 crore that remains contested. The financial hit is relatively small for a company of this size, but the appeal outcome will determine the final impact; expect limited near-term stock price reaction.