HCL Infosystems Wins CESTAT Appeal, ₹16.67 Cr Demand Set Aside

HCL Infosystems Ltd has received a favorable order from the Hon'ble CESTAT, Allahabad, dated August 12, 2026. The tribunal allowed the company's appeal, setting aside an earlier order from the Commissioner, Central Goods & Services Tax, Noida, dated October 31, 2018. Consequently, a demand of ₹16.67 Crores, along with applicable interest and penalty, confirmed against the company under Section 73 of the Finance Act, 1994, has been dismissed. This ruling pertains to the applicability of Service Tax under reverse charge on royalty paid outside India. The Department retains the right to appeal.