Escorts Kubota and Indus Towers Face Tax Penalties Due to Clerical Errors

12 Jan 2024 , 12:52 PM

Escorts Kubota faces a tax penalty of over Rs 20 lakh due to a minute clerical error, as disclosed in an exchange filing.

The penalty, imposed by the Assistant Commissioner, GST Department, Kanpur, Uttar Pradesh, includes Rs 17.37 lakh on January 10 and Rs 2.9 lakh on January 11.

The penalties were attributed to a clerical error in the customer address mentioned on the tax invoice, according to the company’s statement.

Escorts Kubota deems the penalties as ‘unwarranted’ and ‘incorrect’ and plans to file an appeal before the Commissioner (Appeals).

Indus Towers, on January 11, also reported a tax penalty of Rs 2.03 lakh from the Assistant Commissioner, Uttarakhand, citing a clerical error during the movement of goods.

Indus Towers will challenge the order at the appellate authority, stating no material impact on financials, operations, or other activities.

The Allahabad High Court’s recent ruling on January 9 emphasized that a typographical error on an e-way bill, without evidence of intent to evade taxes, should not incur a penalty under the GST Act.

The court’s decision was based on a case involving a cosmetics dealer facing a penalty for a vehicle number typo on the e-way bill during goods transportation.

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