Department Appeals Favorable CESTAT Ruling Against HCL Infosystems in Tax Dispute
HCL Infosystems Limited is facing continued legal challenges after the tax department has filed an appeal before the Allahabad High Court challenging a prior favorable order issued by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) regarding a substantial demand.The matter originated from an Order-in-Original dated March 10, 2021, which had been issued by the office of the Principal Commissioner, Central Goods & Services Tax Commissionerate, Noida. This original order imposed a demand of Rs 312.34 Crores, along with applicable interest and equivalent penalty under rule 14 of the CENVAT Credit Rules, 2004 read with the proviso to Section 73(1) of the Finance Act, 1994.
HCL Infosystems successfully appealed this demand order before CESTAT, Allahabad. The appellate tribunal subsequently set aside the Order-In-Original and ruled in favor of the company regarding the tax imposition.
The government department has now preferred an appeal against this favorable ruling by the Hon'ble CESTAT, Allahbad, which is currently pending at the admission stage before the High Court. No interim order related to the prior decision by the Hon'ble CESTAT has been passed by the Hon'ble High Court. The company intends to take all necessary legal steps to defend its position in this ongoing proceeding.
Key details of the proceedings are summarized below:
| Aspect | Details |
|---|---|
| Authority Appealed Against | Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Allahabad |
| Nature of Action | The Department filed an appeal challenging the order passed by CESTAT in favor of HCL Infosystems Limited. |
| Original Demand Amount | Rs 312.34 Crores plus interest and penalty under relevant rules. |
| Current Status | The matter is pending before the Hon'ble High Court at the admission stage, with no interim order passed. |
The appeal concerns the challenge to a prior order from the Principal Commissioner, Central Goods & Services Tax, Noida. As of July 06, 2026, the department filed the appeal to the Hon'ble High Court of Judicature at Allahabad. The proceedings involve no violation or contravention by HCL Infosystems as alleged in the matter.
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