Delhi, 14 June (H.S.): The Supreme Court temporarily stayed a ₹317.5 crore tax recovery demand from Antrix Corporation Limited, linked to a larger ₹634.89 crore VAT demand for leasing satellite transponder capacity from August 2008 to March 2014. The Karnataka government's June 9 directive required Antrix to pay this amount within seven days. The Court previously stayed a similar demand for April 2005 to July 2008. Antrix sought clarification on whether the earlier stay applied to the subsequent period, leading to the June 12 interim relief. The case hinges on whether leasing transponder capacity is liable for VAT or already taxed under service tax. A related dispute on VAT spanning two periods remains unresolved, with pending appeals in Supreme Court.

In December 2024, tax authorities revived compliance efforts with a 2016 High Court order, prompting recovery actions. Antrix approached the Supreme Court on February 21, 2025, asserting that a 2010 interim stay should extend to this case. The company argued that satellite capacity is a service transaction already taxed, claiming VAT would result in double taxation. Antrix stated ISRO owns and operates the satellite infrastructure, with no transfer to customers. The Karnataka authorities insisted the stay only covered 2005-2008, requiring compliance for later years. The Supreme Court has paused recovery proceedings and will address whether satellite services incur VAT alongside service tax, clarifying Antrix's position amid the dispute.

---------------

Hindusthan Samachar / Jun Sarkar