Mobile Towers Are Not Immovable Property, They Are Eligible For Input Tax Credit: Delhi High Court Allows Airtel's Plea
Live LawThe Delhi High Court has held that mobile/ telecommunication towers are movable properties, eligible for availing input tax credit under the Central Goods and Services Tax Act, 2017. Agreeing, the High Court cited Vodafone Mobile Services Limited vs. Commissioner of Service Tax, Delhi whereby the Delhi HC had found that it would be incorrect to characterize mobile towers as immovable property since they would not satisfy the 'test of permanency' or be liable to be viewed as something 'attached to the earth'. The High Court however said that for this contention to hold water, telecom towers will first have to qualify as immovable property, to fall within the ambit of Section 17. Since the Supreme Court has already held that telecom towers are movable properties, High Court concluded, “Their exclusion from the expression “plant and machinery” would not result in it being concomitantly held that they constitute articles which are immoveable.” Case title: M/S Bharti Airtel Limited v. Commissioner, CGST Appeals-1 Delhi Case no.