Viom Infra Networks, a telecom tower company has challenged the imposition of property tax on the four mobile towers it has installed on the buildings in Mumbai.

Moving the High Court, the company said that tax levied on the towers by the Kalyan Dombivli Municipal Corporation (KDMC) is not justified as they are not permanent structures and the company has entered into a Lease and licence agreement with owners of the buildings.

KMDC on the other hand argues that tax has been levied because thethese towers on the rooftops come in the ambit of new building/structure and therefore are subjected to tax. The company has erected a tower on one of the buildings in Dombivli in May 2011 for which it received a tax bill from the corporation. Thereafter it received similar bills for three other buildings. The corporation according to the petition has even threatened to take action against the company if the tax is not paid.  

The contention of the company is that these towers are temporary structures and are crucial for functioning of telecom operators.

While issuing notices to KDMC and municipal corporation a division bench of Justices V K Tahilramani and M L Tahiliyani has restrained them from moving ahead with any action against the company. They have also been asked to file their replies by January 23.