Supreme court stays Karnataka’s Rs 317 crore VAT demand on Antrix | India News
NEW DELHI: The Supreme Court on Thursday stayed a Karnataka VAT department’s demand of Rs 317 crore from Antrix Corporation Ltd, a central PSU which is the commercial arm of Indian Space Research Organisation, as tax liability for the period 2008-2014.Appearing for Antrix, additional solicitor general N Venkatraman told a partial working day bench of Justices Prashant Kumar Mishra said Manmohan that the VAT department’s June 9 notice to pay the demanded tax, challenge to which is pending in SC for a long period, within two weeks was unwarranted.Venkatraman said the previous dues have been cleared by Antrix by paying service tax to the central government for the transactions and if the court ruled that the services were liable to VAT, then the central govt would have to refund the service tax which would then be paid to Karnataka VAT department.The bench stayed the June 9 demand notice saying the PSU can’t be subjected to pay service tax as well as VAT. It asked the Karnataka VAT department to file its reply to the interim application filed by Antrix.The issue related to the question whether the lease charges received by Antrix from various consumers for providing access to Transponders of Satellites is a taxable sale under the provisions of Karnataka VAT Act, 2003.For the assessment period of 2005-2008, the HC had ruled that the services rendered by Antrix were subject to VAT, which was appealed against by the PSU in SC. The apex court in 2010 had stayed the recovery proceedings after directing Antrix to deposit Rs 50 crore.
