The Supreme Court has upheld a Gujarat High Court (HC) ruling that quashed a Rs 76.4 million penalty imposed by the state stamp department on Vodafone Idea Telecom Infrastructure (formerly Vodafone Towers) under Section 39(1)(b) of the Gujarat Stamp Act, 1958.
The HC had earlier set aside the penalty, terming it excessive, disproportionate, illegal, and unjust. The dispute originated from a Scheme of Arrangement approved by the National Company Law Tribunal (NCLT), Ahmedabad Bench, in September 2019. The scheme enabled the transfer of Vodafone Idea’s fibre infrastructure undertaking to Vodafone Idea Telecom on a going concern basis.
Ahead of the tribunal’s approval, Vodafone Idea had approached the stamp authorities to adjudicate the proper duty on the NCLT order. While stamp duty was determined at Rs 250 million in March 2021, the department also alleged non-payment and imposed an additional penalty of Rs 76.4 million in October 2021.
Despite Vodafone’s stated willingness to pay the duty, the department issued penalty notices. After the Chief Controlling Revenue Authority rejected the company’s challenge in 2022, Vodafone approached the Gujarat HC, which ruled in its favour. The Supreme Court has now upheld that decision.
