Case Law Details
Bharat Sanchar Nigam Limited Vs State of Chhattisgarh (Supreme Court of India)
Supreme Court held that tax/fee/ charge on erection of mobile towers is not upon the owner of the land and building but on the person who is responsible for erecting of the mobile tower on the land and building and is thus using the land or building for erection of the mobile tower.
Facts- The present Special Leave Petitions have been preferred by the petitioners herein, being aggrieved by the order passed by the High Court of Chhattisgarh.
In the writ petitions filed before the High Court, the challenge was to the power and authority of the State Government/local authority to realise tax/fee or a charge on erection of mobile towers by the petitioners herein and also as to the exorbitant quantum of tax/fee (being “initial permit fee”) as well as the subsequent yearly renewal fee as well as the compounding/settlement fee. The main ground of challenge was with regard to the State or local authority not having any power vested with them to issue any Circulars/Directions/Rules as the subject would fall within the scope of Entry 31 of List I of the Seventh Schedule of the Constitution of India, in respect of which there cannot be any intrusion by the State Legislature or any authority of the State. It was contended that under the provisions of the Indian Telegraph Act, 1885, the Central Government had notified the Indian Telegraph Right of Way Rules, 2016 (“2016 Rules”, for short) and therefore the field of legislation being within the Central Government’s domain, the State had no power to impose any tax or fee much less the local authorities.
Conclusion- Held that the person who is using the land and building for the purpose of installation of the mobile tower so as to make use of the said structure for the purpose of telecommunication or telegraph services is liable to pay the tax or fee or charge. Hence, the said payment is not upon the owner of the land and building but on the person who is responsible for erecting of the mobile tower on the land and building and is thus using the land or building for erection of the mobile tower. Hence, Entry 49 List II is the only Entry which can enable the state Government to collect tax or fee or charge, as the case may be, with regard to the use of land and building for the purpose of erection of the mobile towers located within a municipal corporation, municipality or a nagar panchayat or any other land and building within the state of Chhattisgarh.
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