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Telecom battle to heat up in court

Grameenphone, BTRC, NBR get permission to move against HC verdict

Star Business Report
The Appellate Division yesterday allowed Grameenphone, BTRC and NBR to move separate appeals against different portions of a High Court verdict over the telecom regulator’s demand for additional spectrum fees and VAT from the mobile operator.
The seven-member bench of the Appellate Division, headed by Chief Justice Md Muzammel Hossain, set a hearing for October 2.
The apex court passed the order after granting three petitions filed by GP, the Bangladesh Telecommunication Regulatory Commission and National Board of Revenue that sought permission to move against the HC verdict.
Following a writ petition filed by the mobile operator, the HC on February 13 declared illegal a part of the regulator's notice that demanded additional money for the radio frequency it sold to GP in 2008.
The verdict meant GP, the country's largest mobile phone operator, would not need to pay an additional Tk 236.8 crore for radio frequency, which it bought for 18 years in 2008.
The telecom regulator in June filed a 'leave to appeal petition' against this portion of the HC verdict.
GP also filed a leave to appeal petition against a portion of the HC verdict, which upheld the regulator's decision that GP will have to pay the rest of the fees without excluding value-added tax.
In a notice in October last year, the BTRC asked the mobile operator to pay Tk 3,624 crore in licence renewal and spectrum assignment fees. The amount included an additional Tk 236.8 crore in spectrum assignment fee — a demand the HC has declared illegal.
The telecom regulator’s notice had also asked the mobile operator to pay all the money without excluding the amount it pays in VAT.
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Currently, all telecom operators pay charges to the regulator after deducting 15 percent they pay to the tax administrator in VAT.
In the verdict, the HC, however, said the mobile operator will get rebate for the paid VAT from the VAT to be paid ultimately by its subscribers.
The tax administrator filed a leave to appeal petition with the SC against this portion of HC verdict.
Attorney General Mahbubey Alam represented the government. Barrister Rokanuddin Mahmud and Barrister Mustafizur Rahman Khan appeared for GP, Barrister Ajmalul Hossain and Barrister Khandaker Raza-E-Raquib argued for the BTRC, and Additional Attorney General Murad Reza stood fortheNBR.