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TMI Blog2019 (5) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... der - case of petitioner is on the basis that the petitioner being not the owner of the land in which under ground cables are laid, the demand of property tax from the petitioner falls foul of Section 132 (1) of the Act, 1956, which implies that the property tax is payable by the owners of building or land - HELD THAT:- Since the definition of land in the CG Municipal Corporation Act is pari materia with the definition of land in the Gujarat Act, it is incorrect on the part of the petitioner to treat the subject levy of property tax, merely because while collecting the levy, it has used the term for laying of cables. The levy is in fact for use of land for laying of cable. Next argument of learned counsel for the petitioner is that the Corp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n WP No. 1273 of 2003, demand notice under assail has been issued by the Municipal Corporation, Raipur. 3. The petitioner has been granted licence by the Government of India to establish, maintain and operate telephone services in the area described as M. P. Circle covering present Chhattisgarh also. In order to provide telephone services, the petitioner has laid telecommunication cable in different parts of the State of Chhattisgarh including within municipal limits of the city of Raipur and Bhilai. For digging soil in public streets and/or the land belonging to local authorities/municipal corporation, the petitioner has obtained permission under Section 12 of the Indian Telegraph Act, 1885 (hereinafter referred to as 'the Act, 1885& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government of India under which there was no proposal for charging any ground rent for laying cables from the private telecom licencee over the national highways. 6. The petitioner satisfied some demand by depositing the amount under protest but his representation opposing the demand was not decided. The petitioner would further contend that Section 132 of the Act, 1956 does not allow or permit the Corporation to impose any tax on under ground telephone cables. It is also submitted that the petitioner is only user of the land but does not own the land, therefore, for this reason also, the property tax cannot be levied and that too without determining annual letting value. It is further submitted that under ground telephone cable is neithe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ul of Section 132 (1) of the Act, 1956, which implies that the property tax is payable by the owners of building or land. In other words, the petitioner not being the owner of the land, tax is on the cable itself, which is beyond the scope of the provision. 9. The argument though appearing attractive deserves outright rejection in view of the law laid down by the Supreme Court in the matter of Ahmedabad Municipal Corporation Vs. GTL Infrastructure Limited and Others {(2017) 3 SCC 545}. In the said matter, the Supreme Court was considering levy of property tax on mobile towers. The High Court of Gujarat quashed the levy, however, the Supreme Court set aside the order of Gujarat High Court to hold that the levy is in accordance with law and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to conclude thus at para 31 :- "31. The measure of the levy, though may not be determinative of the nature of the tax, cannot also be altogether ignored in the light of the views expressed by this Court in Goodricke {Goodricke Group Ltd. Vs. State of W. B. , 1995 Supp (1) SCC 707}. Under both the Acts read with the relevant Rules, tax on mobile towers is levied on the yield from the land and building calculated in terms of the rateable value of the land and building. Also the incidence of the tax is not on the use of the plant and machinery in the mobile tower, rather it is on the use of the land or building, as may be, for purpose of the mobile tower. That the tax is imposed on the "person engaged in providing telecommunication services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tated on oath that the respective Municipal Corporation have passed a resolution to impose property tax for the use of land for laying under ground cable on the basis of per running meter. Based on the resolution, assessments on the basis of records were carried and such data for laying under ground cable has been used for imposition of property tax against all the telephone/cellular companies like BSNL, Reliance, Airtel, etc. Thus it appears, the Corporation has followed the procedure prescribed under the Act, 1956 for carrying out assessment before issuing demand notice and there is absolutely no violation of the provisions of the Act, 1956. 15. On the basis of above discussion, I do not find any substance in both the Writ Petitions, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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