CHENNAI: In a major relief to the State-run cable TV operator, the Madras High Court, on Friday, granted the interim stay on the Rs 570 crore penalty imposed by the Union government’s GST department on the Tamil Nadu Arasu Cable TV Corporation (TACTV).
The GST department had earlier issued a notice directing TACTV to pay Rs 285.47 crore in unpaid tax dues for the financial years from 2017 to 2022. The dues allegedly stemmed from GST not remitted by local cable operators, according to the reports. Including penalties, the total demand amounted to Rs 570 crore.
Challenging the notice, TACTV filed a petition before the High Court arguing that it functions only as a Multi-System Operator (MSO), distributing television signals to local cable operators. These local operators collect fees from subscribers and are independently liable for their respective GST obligations.
Senior Advocate and Member of the Rajya Sabha P Wilson, appearing for TACTV, argued that the income generated by local operators cannot be attributed to the State corporation.
He further contended that although a response was submitted to the show-cause notice, the GST department issued the final order without properly considering the response.
Accepting these arguments, the court ordered an interim stay on the enforcement of the Rs 570 crore penalty, pending further review of the case.