TaxTMI 
TaxTMI 
2023 (10) TMI 800
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.... and business in the premises where business is being run. Second respondent issued a notice on 04.07.2015 demanding an amount of Rs.2,03,850/- for recovery of advertisement tax namely for the displaying sign board at its premises under Section 189-A of the Municipal Act, 1965. An objection was raised to the same by the appellant contending inter alia that putting up of sign board and displaying the name of the appellant's business would not fall within the definition of "advertisement", rather it was displaying its own name and business through the sign board as it would be necessary for the general public to know the name and nature of business and the product it was dealing with. Being aggrieved by this notice writ petition under Article 226 of the Constitution of India came to be filed and the Hon'ble High Court by impugned order relying upon the judgment of Bharti Airtel (supra) dismissed the petition. Hence this appeal. RE: Facts in CA 5363 of 2023 arising out of the final order and judgment dated 24.10.2017 passed in WP No.2106 of 2012. Appellant is a company incorporated under the Companies Act, 1956 and in order to let the general public know the name and business of th....
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.... or decided in the said case. It is contended display of trade name and nature of business by a trader at its premises does not amount to "advertisement" and this fact has not been considered by the High Court under the impugned judgment. The learned advocates would further elaborate their submissions by contending that if putting up of a sign board at its own premises for identification purposes or for the customers to know the identity of the premises would amount to advertisement then sign name boards of all business establishments, Government officers, public sector undertakings, sign boards put up by professionals like Doctors, Advocates, Engineers, Architects, Consultants, schools, colleges, hotels, restaurants etc. would also fall within the ambit of advertisement and would be liable to pay advertisement tax. Non-putting up of sign board displaying the name of the firm would result in the public or the customer making an extensive research and survey for buying a particular product or availing the services which the appellants were to provide. They would also contend that where the sign boards are put up to attract the customers and to promote the purchase of a particular pr....
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....eneral public about their business, the product and services provided by them which fulfills the definition of "advertisement" as held in Municipal Corporation of Greater Bombay Vs. Bharat Petroleum (2002) 4 SCC 219. He would further contend that display of names of the commodity would fall under the definition of "advertisement" and therefore the name boards containing the names of product would be liable to advertisement tax. Contending on the touchstone of the Judgments of this Court when the facts on hand are examined it would clearly indicate that display boards of the appellants would reflect that they had a common object to seek the attention of the customers and give information about the products and services which they would be rendering and thereby advertising to the general public about the product, its utility etc. and seeking the attention of the customers would tantamount to advertisement. Reiterating the contentions raised in the counter-affidavit and by relying upon the following judgments he has sought for dismissal of the appeals. 1. New Delhi Municipal Committee v/s. Allied Motors Pvt. Ltd (1995) SUPP (4) SCC 150. 2. ICICI Bank & Another v/s. Municipal Corp....
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....e the High Court. 12. The Indore Municipal Corporation is a municipality as defined under Article 243-Q of the Constitution of India and by virtue of Entry No.5 of State List-II under Schedule VII of the Constitution the State Government has promulgated Madhya Pradesh Municipal Corporation Act, 1956 for Constitution, regulation of Municipal Corporation whereunder as the Corporation has been empowered to carry out all civil body works including levy and collection of various taxes which includes the tax on "advertisements" (otherwise advertisements published in newspapers and advertisement broadcasted by radio or television) as provided under Entry No.55 of State List. 13. The respondent authorities have sought to sustain the demand by virtue of Section 132(6)(1) of the Municipal Corporation Act and said provisions reads: "132. Taxes to be imposed under this Act.- (1) For the purpose of this Act, the Corporation shall, subject to any general or special order which the State Government may make in this behalf, impose in the whole or in any part of the Municipal Area, the following taxes namely: - (a) a tax payable by the owners of buildings or lands situated within the city....
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.... (a) plus such percentage of the property tax, as may be determined by the Corporation, subject to the conditions that such percentage shall not exceed ten percent of the amount of property tax. (6) In addition to the taxes specified in sub-section (1), the Corporation may, for the purpose of this Act, subject to any general or special order which the State Government may make in this behalf, impose any of the following taxes, namely: (a) a latrine or conservancy tax payable by the occupier or owner upon private latrines, privies or cesspools or open premised or compounds cleansed by Corporation agency; (b) a drainage tax, where a system of drainage has been introduced; (c) a tax on persons exercising any profession or art or carrying on any trade or calling within the city; (d) omitted (e) omitted. (f) fees on the registration of cattle sold within the city; (g) market dues on persons exposing goods for sale in any market or in any place belonging to or under the control of the Government or of the Corporation; (h) a betterment tax on properties whose value may have improved as a result of town planning scheme under taken by the Corporation; (i) a tax....
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....;s attention to something to promote its sale. 2. The business of producing and circulating advertisements (b) LAW AND COMMERCIAL DICTIONARY Advertisement: Notice given in a manner designed to attract public attention. Edwards v. Lubbock Country, Tex Civ. App., 33 S.W.2d 482. Information communicated to the public, or to an individual concerned, as by handbills, newspaper, television, bill-boards, radio. First Nat. Corporation v. Perrine, 99 Mont 454: 43 P.2d 1073 (c) THE NEW ENCYCLOPAEDIA BRITTANICA VOLUME-I Advertising, the techniques used to bring products, services, opinions, or causes to public notice for the purpose of persuading the public to respond in a certain way toward what is advertised. Most advertising involves promoting a good that is for sale, but similar methods are used to encourage people to drive safely, to support various charities, or to vote for political candidates, among many other examples. (d) COLLINS DICTIONARY OF THE ENGLISH LANGUAGE Advertisement any public notice, as a printed display in a newspaper, short film on television, announcement on radio, etc., designed to sell goods, publicize an event, etc. Advertising 1) the action o....
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....328-A it will create anomalous position, inasmuch as a simple name board put on the house to indicate who is residing in the premises, would also be an advertisement; a name board or signboard of a trader visible to the public or identifying the place of business would also be an advertisement. In our considered opinion advertisement within the meaning of Section 328-A of the Corporation Act must primarily have a commercial purpose and should be indicative of business activity of the displayer with a view to attract the attention of people to its business. 19. In the present case the appellant has put up an illuminated ATM board at various sites and as per the appellant it has been put only to tell the existing customers and others about the location of the ATM centres, which in itself is in the interest of public at large and not to attract new customers for opening the bank account. Normally, the ATM centres enable the customers to carry out the banking activities or transactions at any time, day or night and even on gazetted holidays. They are in the nature of public service as they enable the customers to do away with the need to keep large sums of cash in their house; they ....
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....cting the nature of the respective vehicles which are being sold and it would be inseparable part of the appellants' business establishment. By mere mentioning the name of the product in which the business establishment is being run would not partake the character of the advertisement until and unless by such display customers are solicited. In the absence of the display of the name board or sign board either by a business establishment or any other establishment including public offices and professionals or schools or colleges etc. it would drive the potential customer to such a situation where it would be neigh impossible to identify the business establishment from which the potential customer proposes to buy. However, if the sign boards so displayed would in any manner promote a particular product or goods or services or in other words it would attract customers to purchase a particular brand of product or goods or services and such display provides information about the product/ services and solicit the customers, it may amount to advertisement while the latter would only be an information to the public. The statutory provisions noted hereinabove does not empower the Municipal ....