Kirloskar Brothers Limited (KBL), a leading pump manufacturing company, has successfully concluded its legal battle with Andhra Pradesh GST authorities after the tax department withdrew demand notices and the company subsequently withdrew its writ petition. This marks a positive resolution to the Rs. 15.48 crore GST dispute that had been ongoing since early 2025.

Background of the GST Dispute

The tax controversy originated from demand notices issued to the company's directors regarding alleged GST arrears. The dispute involved two separate notices with different amounts and periods:

The tax demands related to an unincorporated joint venture named IVRCL-KBL-MEIL, formed by Kirloskar Brothers Limited in partnership with IVRCL Ltd. and Megha Engineering & Infrastructure Ltd. for executing a project with the Water Resources Department of Andhra Pradesh.

Legal Proceedings Timeline

Kirloskar Brothers had filed multiple writ petitions to challenge the GST demand notices. The company initially received a demand notice on August 5, 2025, requiring payment within seven days. In response, the company filed a writ petition on August 12, 2025, challenging the assessment order and demand notice.

Resolution and Withdrawal

In a significant development, The Deputy Assistant Commissioner of State Tax, Dwarakanagar Circle, Visakhapatnam Division, issued an endorsement letter on November 20, 2025, informing that the alleged demand notices issued to the directors of the company had been withdrawn.

Consequent to this withdrawal by the APGST authorities, the directors of Kirloskar Brothers also withdrew their writ petition (WP/47631/2025) before the Andhra Pradesh High Court at Amaravati on November 26, 2025. The High Court's order confirming the withdrawal was received by the company on December 15, 2025.

Impact on Company Operations

This resolution eliminates a significant legal and financial overhang for Kirloskar Brothers Limited. The withdrawal of both the tax demand notices and the subsequent legal proceedings provides clarity and removes uncertainty that could have impacted the company's operations and financial planning.

Regulatory Compliance

Throughout the proceedings, Kirloskar Brothers maintained transparency by regularly updating stock exchanges about developments in the case. The company's proactive approach in challenging the notices through proper legal channels while keeping stakeholders informed demonstrates strong corporate governance practices.

The successful resolution of this GST dispute strengthens Kirloskar Brothers' position and allows the company to focus on its core business operations without the distraction of prolonged legal proceedings. This development is particularly significant for the pump manufacturing company as it continues to execute infrastructure projects through joint ventures.

Kirloskar Brothers Limited (KBL), a leading pump manufacturing company, has taken legal action against a substantial GST demand notice issued by Andhra Pradesh tax authorities. The company has filed a writ petition with the Andhra Pradesh High Court, contesting a Rs. 15.48 crore tax claim for the financial year 2017-18.

Background of the Dispute

The tax demand is associated with an unincorporated joint venture (JV) formed between IVRCL Ltd., Kirloskar Brothers, and Megha Engineering & Infrastructure Ltd. This JV was established for a project with the Water Resources Department of Andhra Pradesh.

Legal Challenge

KBL received a demand notice from the Assistant Commissioner (ST), Dwarakanagar Circle, Vishakhapatnam – 1, State Tax Department, Government of Andhra Pradesh. The notice required payment of the alleged tax arrears within seven days of receipt.

In response, Kirloskar Brothers filed a writ petition (No. WP/31611/2025) with the Andhra Pradesh High Court. The company is seeking to set aside the impugned assessment order and demand notice, along with an interim stay pending the writ petition.

Financial Implications

The exact financial impact of this litigation remains uncertain at this stage. Kirloskar Brothers has stated that the financial implications cannot be ascertained due to the ongoing legal proceedings. The company has committed to informing the stock exchanges of any developments in this regard.

Company's Stance

Kirloskar Brothers maintains that the tax demand is related to transactions undertaken by the unincorporated Joint Venture, of which it is a partner. The company's decision to challenge the demand in court suggests that it believes there are grounds to contest the tax authorities' claim.

Broader Context

This legal challenge comes at a time when Kirloskar Brothers is also dealing with other significant corporate matters. In a separate development, the company recently announced the appointment of Mr. Harsh Vardhan Shringla as an Independent Director, subject to shareholder approval. This appointment is for a term of five years and is part of the company's efforts to strengthen its board with professionals from diverse backgrounds.

As Kirloskar Brothers navigates these legal and corporate governance challenges, stakeholders will be closely watching the outcomes and their potential impact on the company's operations and financial position.