NSE/BSE Codes: BSE:500179, NSE:HCL-INSYS

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure regarding receipt of Order-in-Appeal from Additional Commissioner, CGST (Appeals), Noida, which imposes a penalty on the company under Section 74(1) of the CGST Act, 2017.

Involved Parties / Authorities:

  • Petitioner: The Assistant Commissioner, Central GST, Division-I Noida
  • Respondent: HCL Infosystems Limited
  • Adjudicating Authority: Additional Commissioner, CGST (Appeals), Noida

Date / Timeline of Event:

  • Order-in-Original Date: 01 February 2025
  • Order-in-Appeal Date: 15 September 2026
  • Company Receipt Date: 24 September 2026
  • Disclosure Filing Date: 25 September 2026

Brief Description of Outcome / Dispute:

The dispute concerns the applicability of interest and penalty on a tax demand related to disallowance of CENVAT Credit availed for various Cesses in the pre-GST regime. The original order dated 01 February 2025 had confirmed a tax demand of ₹80.22 Lakhs under Section 74(1) of the CGST Act, 2017 but dropped proposals relating to interest and penalty. The Department appealed against this order, specifically challenging the dropping of interest and penalty.

Impact of Outcome:

Financial Impact:

The Order-in-Appeal imposes a penalty of ₹80.22 Lakhs (₹8,022,000) on the Company under Section 74(1) of the CGST Act, 2017. This represents a direct financial liability that will affect the company's financial statements.

Operational / Business / Strategic Impact:

No material operational or business impact disclosures are provided in the document beyond the financial penalty imposition.

Other Implications:

The outcome represents a regulatory compliance matter related to GST interpretation and application. The company's evaluation of legal remedies indicates potential ongoing legal proceedings.

Next Steps / Required Actions:

The Company is evaluating the Order-in-Appeal and considering available legal remedies in accordance with law. This suggests potential further appeals or legal challenges to the penalty imposition.