CESTAT Allahabad Sets Aside ₹22.84 Crore Service Tax Demand Against HCL Infosystems

Last updated: 11 August 2026
Quick Summary
The CESTAT Allahabad has cancelled a service tax demand of ₹22.84 crore levied on HCL Infosystems for the period July 2010 to June 2015. The tribunal ruled that reimbursements of employee costs between group companies were not taxable as business support services. It also found that print services constituted a deemed sale, not a taxable service, and that course material sales were outside the scope of service tax. Furthermore, displaying the Intel logo was not considered advertising service, and VAT paid on goods used in maintenance services allowed for abatement.

Court :
ALLAHABAD

Brief :
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad, in M/s HCL Infosystems Ltd. v. Principal Commissioner, CGST, Noida, Final Order No. 70263/2026 dated 10 August 2026, has set aside a service tax demand of ₹22.84 crore raised against HCL Infosystems Ltd., along with interest and penalties.

Citation :
Service Tax Appeal No.70695 of 2017

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CA Ruby Bansal
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