Dish TV India Limited , a leading Direct-to-Home (DTH) service provider, has been fined a total of Rs. 5.69 lakh by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for non-compliance with board composition and committee requirements for the quarter ended June 30, 2025.

Breakdown of Fines

The fines imposed on Dish TV India are as follows:

High Court Victory in Tax Dispute

In a separate positive development, Dish TV India has secured a favorable ruling from the Bombay High Court (Aurangabad Bench) in a long-standing CENVAT credit dispute. The court dismissed an appeal filed by the Commissioner of Central GST and Central Excise, Aurangabad, observing that no substantial question of law arose in the matter.

Background of the Tax Case

The dispute originated from Dish TV's supply of Smart Cards to Set Top Box manufacturers on a job work basis. The Service Tax Department, Aurangabad, had proposed to disallow and recover CENVAT Credit availed on Smart Cards for the period January 2014 to June 2017.

Legal Victory Details

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, had initially ruled in favor of Dish TV. When the tax department challenged this decision before the Bombay High Court, the court upheld the tribunal's decision and dismissed the appeal, confirming no financial implications for the company at present.

Ongoing Compliance Challenges

Despite the legal victory, Dish TV continues to face regulatory compliance issues related to board composition:

Reasons for Non-Compliance

The company's board has cited two main factors:

1. Non-approval of director appointments by shareholders
2. Mandatory approvals required from the Ministry of Information and Broadcasting

These factors have resulted in the company maintaining only three directors on its board, falling short of the required six directors as stipulated by regulatory norms.

Company's Response to Compliance Issues

Dish TV India has stated that it continuously takes steps to ensure compliance:

• Appointed Mr. Mayank Talwar and Mr. Gurinder Singh as Independent Directors on December 12, 2024
• After shareholder non-approval on August 14, 2025, appointed Mr. Arun Kumar Kapoor and Ms. Heena Naishadh Bhatt as Independent Directors
• On May 28, 2025, appointed Mr. Manoj Dobhal as Chairman and NRC member

The company maintains that compliance issues remain beyond the control of its board and management, primarily due to shareholder decisions and regulatory approval requirements from the Ministry of Information and Broadcasting.

Dish TV , a prominent player in the Indian direct-to-home (DTH) television market, finds itself embroiled in a significant tax dispute as the Commissioner of Central GST and Central Excise, Aurangabad, challenges a recent tribunal decision favoring the company.

The Case at a Glance

Background of the Dispute

The controversy stems from Dish TV's supply of Smart Cards to Set Top Box manufacturers. While the company maintained that this was done on a job work basis, the Service Tax Department in Aurangabad contested this view. The department argued that no actual job work activity was undertaken by the manufacturers, leading to a proposed disallowance and recovery of CENVAT Credit availed on Smart Cards for the period from January 2014 to June 2017.

Legal Journey

1. Initial Order: On July 4, 2019, the Commissioner CGST & C.Ex., Aurangabad, upheld the demand raised by the Department.
2. Appeal: Dish TV appealed this decision at the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai.
3. CESTAT Ruling: CESTAT ruled in favor of Dish TV.
4. Current Status: The Tax Commissioner has now filed an appeal against the CESTAT order at the High Court of Bombay (Aurangabad Bench).

Implications for Dish TV

The outcome of this case could have significant financial implications for Dish TV. If the High Court overturns the CESTAT decision, the company may be liable to pay not only the disputed amount of ₹421.90 million but also an equivalent sum as penalty, along with applicable interest.

This legal battle underscores the complex tax environment that businesses in India navigate, particularly in sectors with evolving technology and service models. The final verdict of this case could potentially set a precedent for similar disputes in the broadcasting and technology sectors.

As the case progresses through the High Court, stakeholders and industry observers will be keenly watching for its potential impact on Dish TV's financials and the broader implications for the interpretation of job work and CENVAT credit rules in the GST regime.