Arasu Cable Gets Interim Relief from Madras High Court in ₹570 Crore GST Dispute

By Author / May 3, 2025
Category: GST Demand News – 2025, GST Recent News – 2025

Court Grants Interim Stay on GST Penalty

In a major relief for Tamil Nadu Arasu Cable TV Corporation (TACTV), the Madras High Court has granted an interim stay on the ₹570 crore GST demand issued by the Union government. The demand included unpaid taxes and penalties for the financial years 2017 to 2022.

Dispute Over Tax Responsibility

The GST department directed TACTV to pay ₹285.47 crore in unpaid dues. It claimed that local cable operators failed to remit the appropriate GST. Including penalties, the total claim reached ₹570 crore.

TACTV challenged the notice, arguing that it acts only as a Multi-System Operator (MSO). The corporation distributes TV signals to local operators who, in turn, collect fees from subscribers. TACTV claimed it cannot be held liable for taxes owed by these independent operators.

Legal Arguments Presented

Senior Advocate and Rajya Sabha Member P. Wilson represented TACTV. He argued that the GST department ignored TACTV’s formal response to the show-cause notice. He maintained that the income of local cable operators should not be attributed to the state-owned MSO.

Interim Stay Granted

The High Court accepted these arguments and issued an interim stay on the ₹570 crore enforcement. The case remains under judicial review.