Karnataka High Court Upholds Levy of Sales Tax on Set-Top Boxes
- Case Name: M/S Atria Convergence Technologies Ltd v. Deputy Commissioner of Commercial Tax
The Karnataka High Court has upheld the sales tax on set-top boxes, classifying them as "goods" under Section 2(15) of the KVAT Act.
The court stated that the transfer of the right to use STBs for a fee qualifies as a “sale” as defined in Section 2(29)(d).
It also supported the retrospective enforcement of the 2021 notification under Section 174(2) of the KGST Act, asserting that Section 174 guarantees the ongoing applicability of the KGST Act.
The Court dismissed allegations of double taxation, clarifying that VAT and service tax pertain to distinct elements.
The court dismissed a series of petitions filed by companies such as ACT, Tata Play, Den Network among others.
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