CESTAT quashes Rs 22.85 Cr tax demand in favor of HCL Infosystems

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HCL-INSYS · price

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Price reactionminutes from the announcement price · days from the prior close

+1.2%Reaction day

₹11.49

prior close

₹11.60

announcement price

After-mkt

timing

Nifty Microcap 250market · in no size index; the smallest one is used+0.4%+0.8% vs market

Computers Hardware & Equipments peers, median of 17sector-0.8%+2.1% vs sector

On the reaction day the stock moved 0.8 pts more than Nifty Microcap 250 and 2.1 pts more than its Computers Hardware & Equipments peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

Minutes after the announcementfrom the announcement price · no benchmark

Stock

-0.6

10m

-1.7

15m

-0.9

30m

-0.9

Sessions after the filingfrom the prior close

StockMarketvs marketSectorvs sector

Reaction day

+1.2+0.4+0.8-0.8+2.1

Next day

+0.5+0.5-0.0+0.3+0.2

-0.8+0.6-1.4-0.8-0.0

-2.1+0.7-2.8-0.7-1.4

-1.5+1.1-2.6-0.9-0.5

-2.1+0.5-2.6-2.0-0.1

-3.7+1.3-4.9-1.3-2.4

15d

-10.3+0.5-10.8-1.5-8.8

-12.7-0.8-11.9-4.0-8.7

-12.4-0.9-11.5-6.6-5.8

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UpDownMarket · Nifty Microcap 250Sector · Computers Hardware & Equipments peers, median of 17Pending

Minute windows have no benchmark: there is no intraday index history to compare against.

AI summary

CESTAT Allahabad allowed HCL Infosystems' appeal and set aside a Rs 22.85 Crore service tax demand (plus interest and penalty) originally raised by the Central GST Commissionerate, Noida in July 2017. The dispute concerned taxability of service tax on multiple services. The tax department retains the right to appeal to a higher forum.

Likely market impact

Positive — Rs 22.85 Cr tax demand plus interest and penalty is set aside, though the department may still appeal further.