Gujarat High Court
Bharat Sanchar Nigam Limited -Thro ... vs State Of Gujarat - Through Secretary on 3 December, 2025
NEUTRAL CITATION
C/SCA/1235/2012 JUDGMENT DATED: 03/12/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 1235 of 2012
FOR APPROVAL AND SIGNATURE:
HONOURABLE MRS. JUSTICE MAUNA M. BHATT
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Approved for Reporting Yes No
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BHARAT SANCHAR NIGAM LIMITED -THRO ASSISTANT GENERAL
MANAGER
Versus
STATE OF GUJARAT - THROUGH SECRETARY & ANR.
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Appearance:
MR GAURANG H BHATT(166) for the Petitioner(s) No. 1
MR MRUNAL DHOLARIA AGP for the Respondent(s) No. 1
MR NIRAD D BUCH(4000) for the Respondent(s) No. 2
SHIVANG J RAMANI(8060) for the Respondent(s) No. 2
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CORAM:HONOURABLE MRS. JUSTICE MAUNA M. BHATT
Date : 03/12/2025
ORAL JUDGMENT
1. This petition is filed seeking to quash and set aside the resolution No. 46 dated 31.03.2008 (Annexure B, Page No. 30) of Respondent No.2 and also the demands raised for levy of property tax vide Consolidated Bill dated 13.10.2011 (Page No.
39) for the period 2000- 2011. It is case of the petitioner that the resolution No. 46 dated 31.03.2008 by the respondent Page 1 of 11 Uploaded by SHIVANI SHUKLA(HC02350) on Mon Dec 08 2025 Downloaded on : Mon Dec 08 20:39:39 IST 2025 NEUTRAL CITATION C/SCA/1235/2012 JUDGMENT DATED: 03/12/2025 undefined No.2- Nagar Palika, as also the levy of property tax vide Consolidated Bill dated 13.10.2011, is contrary to the provisions of Gujarat Municipalities Act, 1963, as also against the settled position of law.
2. Brief facts, as referred in the petition, are as under: -
2.1. The petitioner herein is an enterprise of the Government of India and provides the landline as well as cellular telecom services to the customers throughout India including State of Gujarat w.e.f. 01.10.2000.
2.2. For the purpose of providing services of telecommunication, the petitioner has installed mobile towers within their premises situated in Surendranagar town. It is not in dispute that prior to installation of mobile towers, the petitioner was paying property tax to respondent - Nagarpalika as per the rate applicable for the property it possessed.
However, on account of installation of four mobile towers (two in its own premises and two at some private property place), the respondent - Nagarpalika levied property tax on these mobile towers aggregating to Rs.25,32,420/-. This levy was made under Section 132 of the Gujarat Municipalities Act, 1963. The levy of property tax on mobile towers was pursuant Page 2 of 11 Uploaded by SHIVANI SHUKLA(HC02350) on Mon Dec 08 2025 Downloaded on : Mon Dec 08 20:39:39 IST 2025 NEUTRAL CITATION C/SCA/1235/2012 JUDGMENT DATED: 03/12/2025 undefined to passing of resolution No. 46 dated 31.03.2008 in the General Body Meeting by respondent - Nagarpalika. Since levy of property tax on these four mobile towers with retrospective effect was contrary to the provision of the Gujarat Municipalities Act,1963, as also against the settled principle of law, this petition is filed.
3. Heard learned advocate Mr. Gaurang Bhatt for the petitioner. Learned advocate for the petitioner submitted that passing of resolution No. 46 dated 31.03.2008 by respondent - Nagarpalika is erroneous, because property tax cannot be levied retrospectively.
3.1. Learned advocate for the petitioner submitted that, in view of new telecommunication era requirement arose to install mobile towers which the petitioner installed, two in its own premises and two at some private property place. Even in view of the requirement of mobile communication by the service providers, an amendment has been carried out in the Municipalities Act, 1963, w.e.f. 04.05.2011. By placing reliance on GUJARAT ACT NO. 21 OF 2011 , learned advocate for the petitioner submitted that Clause (12B) was inserted in Section 2 of the Gujarat Municipalities Act, 1963. Under Clause (12B), definition of mobile tower has been introduced. Consequently, Page 3 of 11 Uploaded by SHIVANI SHUKLA(HC02350) on Mon Dec 08 2025 Downloaded on : Mon Dec 08 20:39:39 IST 2025 NEUTRAL CITATION C/SCA/1235/2012 JUDGMENT DATED: 03/12/2025 undefined by way of an amendment clause (xiv-a), was introduced in sub-section (1) of Section 99 of the Gujarat Municipalities Act,1963, where under the Municipality was permitted to levy tax from the person/entity engaged in providing communication services through mobile towers. It is true that the petitioner is providing telecommunication services and, therefore, upon insertion of this provision, it is amenable for levy of property tax on mobile towers but retrospective levy is not permissible.
3.2. Learned advocate for the petitioner further submitted that no reference of retrospective levy is made in the amended provision which had been introduced w.e.f 04.05.2011. When the provision itself is not specifying retrospectivity, application of the said provision, retrospectively for levy on property tax from the year 2000-2011 being bad in law deserves to be quashed and set aside.
3.3. Learned advocate for the petitioner submitted that this issue is no more res integra, as it has been decided by this Court in the case of INDUS TOWERS LTD. V. STATE OF GUJARAT & 1 in Special Civil Application No. 1898 of 2009 and other allied petitions wherein it is held as under:-
"39. Before parting it may be noticed that the BPMC Act has been enacted in Page 4 of 11 Uploaded by SHIVANI SHUKLA(HC02350) on Mon Dec 08 2025 Downloaded on : Mon Dec 08 20:39:39 IST 2025 NEUTRAL CITATION C/SCA/1235/2012 JUDGMENT DATED: 03/12/2025 undefined the year 1949 whereas the Gujarat Municipalities Act, 1963 has been enacted in the year 1963. At the relevant time there were no mobile phones, hence the question of making any provision for mobile telecommunication towers did not arise. With the advent of new technology which was not envisaged when the legislation was framed, necessary amendments are required to be made in the Acts making provision for bringing the technological advances within the purview of the Acts. However, till such exercise is undertaken by the Legislature, it is not permissible for the respondent authorities to levy and collect taxes or fees in respect of mobile telecommunication towers which do not find place in the corresponding statutes".
40. In view of the above discussion, it is hereby declared that the impugned Government Resolution dated 11th December, 2008 issued by the Government of Gujarat Urban Development and Urban Housing Department is ultra vires the provisions of Article 265 of the Constitution as well as ultra vires the provisions of the Bombay Provincial Municipal Corporations Act, 1949 as well as the Gujarat Municipalities Act, 1963. In the aforesaid premises, the impugned Government Resolution being Page 5 of 11 Uploaded by SHIVANI SHUKLA(HC02350) on Mon Dec 08 2025 Downloaded on : Mon Dec 08 20:39:39 IST 2025 NEUTRAL CITATION C/SCA/1235/2012 JUDGMENT DATED: 03/12/2025 undefined contrary to the decision of this Court in Reliance Communications Limited (supra) as well as having been issued without any authority of law cannot be sustained and deserves to be quashed and set aside."
Therefore, since retrospective levy on property tax on a mobile tower being already considered and decided by this Court, this issue being squarely covered by the said decision, the petition deserves to be allowed. Therefore, resolution dated 31.03.2008 as well as the levy of property tax by Consolidated Bill dated 13.10.2011 deserves to be quashed and set aside. Further, reliance is also placed on the decision of this Court in Special Civil Application No. 10816 of 2010 dated 04.02.2011, Special Civil Application No. 2961 of 2010 dated 07.05.2010, Special Civil Application No. 157 of 2010 with Special Civil Application No. 13960 of 2009 dated 22.04.2010 to submit that identical issues have been considered by this Court in all these petitions.
3.4. Learned advocate for the petitioner submitted that one more aspect which needs to be considered in this case is that public notice dated 22.12.2011 (Annexure C, Page No. 34) was put by respondent - Nagarpalika for levy of property tax on mobile tower. The said public notice dated 22.12.2011 refers to Page 6 of 11 Uploaded by SHIVANI SHUKLA(HC02350) on Mon Dec 08 2025 Downloaded on : Mon Dec 08 20:39:39 IST 2025 NEUTRAL CITATION C/SCA/1235/2012 JUDGMENT DATED: 03/12/2025 undefined levy of property tax on mobile tower from the year 01.04.2011. In this case, all the bills for which levy has been made to the petitioner are prior to 01.04.2011 and, therefore, petitioner's case does not fall in the levy as decided by respondent - Nagarpalika. From the Bills (Page No. 39), it is evident that the bills are levied for the period 2000-2011. This levy was made for the period of 1st of April to 31st March of the concerned financial year, and, therefore, this resolution No. 46 dated 31.03.2008 and the levy of property tax vide Consolidated Bill dated 13.10.2011 deserves to be quashed and set aside.
4. On the other hand, learned advocate Mr. Nirad Buch for the respondent No.2 submitted that the issue in the case of INDUS TOWERS LTD. V. STATE OF GUJARAT & 1 (Supra) and other allied petitions refers to the levy and recovery of annual permission fees and installation charges of mobile communication towers in the areas covered under Municipal Corporation. Whereas, in this case, the issue is levy of property tax on mobile towers. Further, since the matter being old and prior to incorporation of Surendranagar NagarPalika in to Municipal Corporation w.e.f. 06.01.2025, in absence of relevant documents it would be difficult for the Corporation to ascertain with regard to the levy of property tax. However, Page 7 of 11 Uploaded by SHIVANI SHUKLA(HC02350) on Mon Dec 08 2025 Downloaded on : Mon Dec 08 20:39:39 IST 2025 NEUTRAL CITATION C/SCA/1235/2012 JUDGMENT DATED: 03/12/2025 undefined learned advocate could not dispute retrospective levy of property tax on mobile towers for the year 2000-2011. Learned advocate also could not dispute that the amendment in the Gujarat Municipalities Act, 1963 is introduced w.e.f 04.05.2011.
5. Considering the submissions and documents on records, and the decisions relied upon, at the outset, it is noticed that the issue involved in this petition is only with regard to levy of property tax on the mobile towers for the period 2000-2011. Admittedly, earlier to this levy, the property tax was assessed for the property of the petitioner every year for the period of 1st of April to 31st of March i.e. every financial year and the same has been paid accordingly. However, on account of the need arising for installation of mobile towers by the telecommunication service providers, the petitioner installed four mobile towers in the year 2000. Further, pursuant to the requirement of telecommunication through mobile towers, an amendment was introduced in Section 2 of the Gujarat Municipalities Act, 1963, wherein, Clause (12B) in Section 2, had been introduced which reads as under:-
"(12B) "mobile tower" means a temporary or permanent structure, equipment or instrument erected or installed on land or upon any Page 8 of 11 Uploaded by SHIVANI SHUKLA(HC02350) on Mon Dec 08 2025 Downloaded on : Mon Dec 08 20:39:39 IST 2025 NEUTRAL CITATION C/SCA/1235/2012 JUDGMENT DATED: 03/12/2025 undefined part of the building or premises for providing telecommunication services."
Thus, by introduction of Clause (12B) in Section 2 of the Gujarat Municipalities Act, 1963, mobile tower has been defined. Consequently, an amendment is also made in Section 99 of the Gujarat Municipalities Act,1963, wherein Clause (xiv-
a) is inserted in Sub-Section(1) of Section 99, which reads as under:-
"(xiv-a) a tax on mobile towers to be levied from the person engaged in providing telecommunication services through such mobile towers;".
Section 99 of the Act 1963, provides for Taxes which may be Imposed; wherein by insertion of Clause (xiv-a) to Sub-section (1) of Section 99, a tax on mobile towers has been introduced from the person engaged for providing communication services through such mobile towers. Thus, it is not in dispute that the petitioner is liable for payment of property tax as envisaged under Clause (xiv-a), Sub-Section (1) of Section 99, however, in this case, the levy has been made from the year 2000-2011, that is, prior to the insertion of section, which has been subjected to chellange. This Court in the case of INDUS TOWERS LTD. V. STATE OF GUJARAT & 1 (Supra) held as under:-
Page 9 of 11 Uploaded by SHIVANI SHUKLA(HC02350) on Mon Dec 08 2025 Downloaded on : Mon Dec 08 20:39:39 IST 2025NEUTRAL CITATION C/SCA/1235/2012 JUDGMENT DATED: 03/12/2025 undefined "39. Before parting it may be noticed that the BPMC Act has been enacted in the year 1949 whereas the Gujarat Municipalities Act, 1963 has been enacted in the year 1963. At the relevant time there were no mobile phones, hence the question of making any provision for mobile telecommunication towers did not arise. With the advent of new technology which was not envisaged when the legislation was framed, necessary amendments are required to be made in the Acts making provision for bringing the technological advances within the purview of the Acts. However, till such exercise is undertaken by the Legislature, it is not permissible for the respondent authorities to levy and collect taxes or fees in respect of mobile telecommunication towers which do not find place in the corresponding statutes".
6. Moreover, evidently in the public notice, the Municipal Corporation has introduced the levy of property tax on mobile towers, w.e.f. 01.04.2011 and the petitioner's case does not fall in that because the bills were issued for the period post 01.04.2011. In other words, the levy for which the bill was raised is prior to the period 01.04.2011. Therefore, in view of the above, that:-
(i) Clause (xiv-a), sub-section(1) of Section 99 does not permit Page 10 of 11 Uploaded by SHIVANI SHUKLA(HC02350) on Mon Dec 08 2025 Downloaded on : Mon Dec 08 20:39:39 IST 2025 NEUTRAL CITATION C/SCA/1235/2012 JUDGMENT DATED: 03/12/2025 undefined retrospectivity.
(ii) the clarification of respondent - Nagarpalika in the public notice dated 22.12.2011 mandates levy after 01.04.2011 and
(iii) the decision of this Court in case of INDUS TOWERS LTD.
V. STATE OF GUJARAT & 1 (Supra) ; this Court deems it appropriate to quash and set aside the resolution No. 46 dated 31.03.2008 and the levy made under Consolidated Bill dated 13.10.2011. It is made clear that the levy of property tax on mobile towers is quashed and set aside only for the period prior to 01.04.2011.
7. In view of above, this petition is allowed to the aforesaid extent. Rule is made absolute to the aforesaid extent. No cost.
(MAUNA M. BHATT,J) SHIVANI SHUKLA/77 Page 11 of 11 Uploaded by SHIVANI SHUKLA(HC02350) on Mon Dec 08 2025 Downloaded on : Mon Dec 08 20:39:39 IST 2025