Municipal advertisement tax levy challenged after GST omission, with further proceedings and auction stayed pending scrutiny.

Challenge was raised to a tender notice for recovery of advertisement tax on the ground that, after Section 173 of the U.P. Goods and Services Tax Act, 2017 and the omission of specified provisions of the U.P. Municipal Corporation Act, 1959, the Municipal Corporation lacked authority to levy the tax. The Court noted that the statutory basis for the levy required scrutiny and, pending counter affidavit and rejoinder, stayed further proceedings including the auction under the impugned tender notice. No final ruling was given on the validity of the levy, and only interim protection was granted.

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Issues: Whether, in view of Section 173 of the U.P. Goods and Service Tax Act, 2017 and the omission of the identified provisions of the U.P. Municipal Corporation Act, 1959, the Municipal Corporation retained authority to levy advertisement tax.

Analysis: The petition raised a challenge to the tender notice for realisation of advertisement tax on the ground that the statutory basis for such levy stood omitted after the GST enactment. The Court recorded that the issue required scrutiny and granted time for counter affidavit and rejoinder. Till the next date, further proceedings, including the auction pursuant to the impugned tender notice, were stayed.

Outcome: No final adjudication was made on the validity of the levy, and interim protection was granted by staying further proceedings.

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