INDUS TOWERS LTD Vs. STATE OF GUJARAT

JUDGEMENT

(1.) These petitions under Article 226 of the Constitution of India challenge Government Resolution dated 11th December, 2008 issued by the Government of Gujarat, Urban Development and Urban Housing Department and demand notices issued pursuant thereto providing for levy and recovery of Annual Permission Fees and Installation Charges on mobile telecommunication towers in the areas covered under Municipal Corporations/Municipalities in the State of Gujarat. Since common facts and questions of law are involved in all these petitions the same were heard together and are being disposed of by this common judgment. For the sake of convenience, the facts are taken from Special Civil Application No.1898 of 2009.

(2.) The petitioner is a public limited company incorporated under the Companies Act, 1956 and holds a licence to operate cellular telecom services under the provisions of the Telegraph Act, 1885. For the purpose of providing mobile/telecommunication service to its customers/subscribers, the petitioner company is required to have Base Trans-receiver Stations installed, which are popularly known as mobile towers. For setting up such mobile towers, the company enters into agreements with private property owners and thereafter, applies for permission from the concerned local authority to place towers in the said properties. Mobile towers are placed on structures, either on the open ground or on the terrace of the buildings belonging to private persons. The petitioner company has installed or is in the process of installing such equipment in various places in the State of Gujarat.

(3.) The Director of Municipalities issued circular dated 12th May, 2006, under the heading "Instructions for levying fees for installation of mobile telecommunications towers and N.O.C. Permit." The said circular provided for levy of property tax and permission fee. Based upon the said circular, different municipalities started charging different permission fees and annual fees.