Municipal taxation must rest on express statutory authority; advertisement levy on private shop hoardings was struck down.

A municipal body cannot levy advertisement tax or fee on hoardings, signboards or glow-signs fixed on private shops unless the parent statute expressly authorises it. Section 128 of the U.P. Municipalities Act, 1916 exhaustively lists municipal taxes, and the provisions on fee, licence and bye-laws could not be used to create a fresh fiscal levy where no statutory power existed. The Court held that collection through private agencies and consequential notices were without authority, so the municipal demand was illegal and unsustainable.

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Issues: Whether Nagar Palika Parishads/Nagar Panchayats had authority under the U.P. Municipalities Act, 1916 to levy and collect advertisement tax or fee on hoardings, signboards and glow-signs affixed on private shops, and whether such levy could be supported by bye-laws, licence fee or contract collection through private agencies.

Analysis: Section 128 of the U.P. Municipalities Act, 1916 exhaustively specifies the taxes that a municipality may impose, and advertisement tax on hoardings or signboards on private premises is not one of them. In fiscal matters, subordinate authorities can act only within express statutory delegation and cannot rely on implied or incidental power to impose a tax. Section 293-A permits a fee only for use of places to which the public is allowed access and where municipal sanitary or other facilities are provided, which does not cover advertisements placed above private shops. Section 294 also fails to assist the respondents because licence fee can be charged only where the Act or bye-laws require sanction or permission, and no such permission is needed for such hoardings on private property. Section 298 enables bye-laws only within the limits of the Act and cannot be used to create a taxing power that the Act itself does not confer.

Conclusion: The respondents had no authority to impose or realise advertisement tax or fee on hoardings, signboards and glow-signs on private shops, and the levy and consequential notices were illegal and unsustainable.

Final Conclusion: The writ petitions succeeded and the municipal demand for advertisement tax was struck down as being without statutory authority.

Ratio Decidendi: A municipal body can levy tax or fee only when the parent statute expressly authorises it, and bye-laws or administrative arrangements cannot create a fiscal levy beyond that statutory delegation.

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