Claims worth Rs 14,243.3 crore against Indus Towers under litigation

economictimes.indiatimes.com:

Indus Towers, the country’s top telecom tower company, has claims worth Rs 14,243.3 crore against it under litigation in various courts across India, according to its latest regulatory filing on the BSE. In Indus’s case, pending litigations include a Rs 3,565.7 crore claim by the Service Tax Department relating to disallowance of Cenvat credit availed on inputs, capital goods and input services for the pre-GST period following an adverse Bombay High Court ruling on the premise that towers and shelters are immovable property.

Other key demands under litigation include a Rs 1,865.8 crore claim on levy of VAT on the right to use in goods/services provided to telcos in the pre- GST era. There is also a Rs 3,754.2 crore demand relating to denial of depreciation on assets received under the merger (read: read the Indus-Bharti Infratel merger).

“The said events/ information generally form part of the contingent liability under the financial statements of the company, which have been disclosed from time to time and are now being separately disclosed pursuant to the requirement introduced under amended Regulation 30(4) of the Listing Regulations,” Indus said in an exchange filing, dated August 14. With regard to the Rs 3,565.7 crore demand by the Service Tax Department, Indus had filed a writ petition in the Delhi High Court, and had received a favourable judgement in October 2018, wherein it was held that telecom towers are movable in nature and Cenvat credit can be availed of on receipt of such goods.

However, the service tax department subsequently moved the Supreme Court, and the same is pending adjudication. “The matter will come up for final arguments in due course,.” Indus said in its exchange filing.