While disposing a bunch of petitions, a division bench of Madhya Pradesh High Court has upheld the imposition of advertisement tax levied by the Indore Municipal Corporation on the sign boards erected by the dealers, distributers and retailers in their business premises.
In the instant case, the Municipal Corporation, Indore directed the petitioners to remit advertisement tax in respect of glow signs and neon signs board affixed in or outside the premises of dealers, distributors and retailers and to pay the same to M/s. Shouraditya Advertisement, a collecting agency for the purpose of collection of advertisement tax.
Challenging the imposition of tax before the High Court, the petitioners contended that the boards are displayed by their dealers, distributors and retailers at their respective premises for the purpose of bringing availability of the petitioner’s products to the knowledge of common public. It was contended that tax cannot be levied on such matters and the action of the Municipal Corporation, Indore is illegal, ultra vires, and unconstitutional.
While dismissing the petitions, the division bench comprising of Justices S.C Sharma and Alok Verma relied on in its earlier decision in Bharti Airtel Vs. State of Madhya Pradesh wherein the Court upheld the imposition of entertainment tax by the Corporation through an agency M/s. Shouaditya Advertisement.
Following the above precedent, the bench also rejected the argument of the petitioners in the connected matters that the boards erected by the establishment owner is not an advertisement and it is the name of the shop or the name of the product or the name of the company of which the shopkeeper is dealing.
Read the full text of the Judgment below.
