 Karnataka High Court Upholds Sales Tax on Set-Top Boxes

Karnataka High Court Ruling! The Karnataka High Court has upheld the sales tax on set-top boxes, ruling them as "goods" under the KVAT Act.

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Why the Dispute? Cable providers argued STBs are only for signal reception, not independent goods. They claimed no transfer of ownership, challenging the sales tax demand.

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What Did the Court Say? The Karnataka High Court ruled STBs are "movable property," used exclusively by subscribers, making them taxable under the KVAT Act.

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Retrospective Tax Upheld The Court upheld a 2021 government notification applying sales tax retrospectively from 2017, rejecting claims that it lacked legal backing.

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Double Taxation Debate Petitioners claimed both VAT and service tax were unfair. The Court clarified: VAT applies to STBs as goods, while service tax covers activation fees

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