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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
S.R.KRISHNA KUMAR
Indus Towers Limited – Appellant
Versus
Deputy Commissioner Of Commercial Taxes (AUDIT-4.7), Dgsto-4 – Respondent
ORDER :
S.R.KRISHNA KUMAR, J.
1. In this petition, petitioner seeks for the following reliefs:-
“ a) Issue a writ of Certiorari or any other appropriate Writ or order or direction under Article 226 of the Constitution of India quashing the Show cause Notice Reference No.DC(Aud)-4.7/GST/DRC-01/IND2024-25 in FORM-GST-DRC-01 dated: 24.05.2024 issued by Respondent No.1 at Annexure-A, for the period from April 2019 to March 20202 which proposed to demand and recover ITC of Rs.24,22,64,468/- [CGST of Rs.7,14,68,174/- + SGST of Rs.7,14,68,174/- + IGST of Rs.9,93,28,150/-] along with interest and penalty under Section 73 of the CGST Act/KGST Act.
b) for such further other reliefs as the nature and circumstances of the case may require.”
2. Heard learned counsel for the petitioner and learned HCGP for the respondent – revenue and perused the material on record.
3. The issue in controversy involved in the present petition as regards Input Tax Credit on inputs/capital goods / input services used for construction of telecommunication towers by the petitioner came up for consideration before the Division Bench of the Delhi High Court in the case of M/s.Bharti Airtel Limited, Indus Towers Limited, Ele
Telecommunication towers are considered movable property and qualify for input tax credit, as they do not meet the criteria for immovable property under Section 17(5) of the CGST Act.
Mobile towers and prefabricated buildings qualify as capital goods and inputs under CENVAT Rules, allowing mobile service providers to claim CENVAT credit on excise duties paid.
Towers and shelters used in telecommunication qualify as 'inputs' under CENVAT Rules, allowing for credit claims despite being classified as immovable property.
Input tax credit cannot be denied for mobile towers as they are classified as goods and not immovable property, per established legal precedents.
The solar power generating system is classified as a composite supply, not a works contract, as it does not constitute immovable property under GST law.
Adherence to the principles of natural justice is essential for orders passed by public authorities.
The court established that disputes related to mobile tower installations are not within the jurisdiction of the Permanent Lok Adalat as they do not constitute 'public utility service' under the Act.
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