
Vodafone Idea has asked the Supreme Court to exempt it from paying penalties, interest, and interest on penalties on adjusted gross revenue (AGR) it owes the government. The demand has been raised through an amendment to its earlier petition earlier this month in which it had challenged the additional AGR of ₹9,450 crores till 2018-19 (FY19). The amended petition seeks waiver of interest and penalties on grounds that the Department of Telecommunications was not clear about the amount of AGR.
The petition, dated September 18, argues that the disputed components of the AGR dues are yet to be finalised, while the telecom operator has already paid all undisputed amounts on a self-assessment basis.
The Supreme Court has now deferred the hearing on the matter to October 6.
Vodafone Idea, in its amended petition, argued that it cannot be held in default over AGR dues until the principal amount is reconciled and finalized. “The Hon’ble Supreme Court, for the first time, directed inclusion of the disputed heads in the computation of AGR. Hence, till date, it cannot be said that there was any default warranting imposition of penalty,” the company submitted.
The telco noted that both the DoT and the company agree that the dues require reconciliation, correction, and finalisation.
“Until the principal amount payable is crystallised and finalised, the petitioner cannot be said to be in default requiring payment of penalty,” Vodafone Idea added.
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