Madras HC grants interim stay to TACTV on GST

The Madras High Court has granted an interim stay on the order confirming the demand and recovery of an amount of Rs 285,04,79,342 along with penalty of the same amount from M/s. Tamilnadu Arasu Cable TV Corporation Limited (TACTV) in the writ petition challenging the order of joint commissioner of Central Taxes.

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Mr. Justice Krishnan Ramasamy issued the interim stay after hearing Mr. P. Wilson, senior advocate representing the government company.

The petitioner, TACTV, challenged the demand made by the Joint Commissioner of Central Taxes, Chennai North Commissionerate, Office of the Principal Commissioner of CGST and Central Excise, Chennai by the above writ petition.

The petitioner stated that it operates as a Multi-System Operator (MSO) within a statutory framework governed by the Cable Television Networks (Regulation) Act, 1995, the Telecom Regulatory Authority of India Act, 1997, and related regulations.

TACTV transmits signals to Local Cable Operators (LCOs), who, in turn, service the end customers and there is no direct nexus with end consumers by TACTV.

Under interconnection agreements with LCOs, made in compliance with Regulation 12 of the Telecommunication (Broadcasting and Cable) Services Interconnection Regulations, 2017, TACTV is obligated to transmit signals to the LCOs, while the LCOs are responsible for delivering services to the end consumers.