TaxTMI 
TaxTMI 
2025 (11) TMI 1264
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....for the State. 2. Present petition has been filed to challenge the recovery certificate dated 12.06.2019 for recovery of Rs. 2,55,78,080/- towards advertisement tax. That recovery certificate has been issued pursuant to demand notice dated 20.09.2018. Further prayer has been made to refund the amount deposited by the petitioner towards advertisement tax, for the period 01.07.2017 to 12.02.2018. 3. Earlier, writ petition was dismissed vide following order dated 22.07.2019: "Supplementary Affidavit filed today is taken on record. Heard Sri M.K. Nigam, learned Counsel for the petitioner and Sri S.M. Shukla, learned Counsel for the respondents-Nagar Nigam and Sri B.P.S. Kachhawah, learned Standing Counsel for the respond....
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....missed as withdrawn by the learned Civil Judge (Senior Division) Ghaziabad. That order has attained finality. Accordingly, the writ petition has been heard. 6. Petitioner is a service provider engaged in the activity of hosting advertisements through hoardings, signage etc. at various public places within the limits of Nagar Nigam, Ghaziabad. For the purposes of conduct of its business it entered into three agreements with the Nagar Nigam, Ghaziabad for the period 13.02.2017 to 12.02.2019, whereunder it was made entitled to put up advertisements in specific zones against payment of advertisement fee and tax. Thus, under these three agreements the petitioner was made liable to pay advertisement fee and taxes on per annum basis as below. ....
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.... the enforcement of the U.P. GST Act, 2017 the legislative competence of the State Legislature was taken away by virtue of 101st Constitution Amendment Act. Consisted thereto Section 173 and 174 of the U.P. GST Act, 2017 were enforced on the executive authorities under that constitutional mandate. Resultantly, no levy of advertisement tax may arise or be pressed against the petitioner for the period 01.07.2017 onwards. 10. Consequently, in the first place Nagar Nigam may never demand any amount towards advertisement tax for the period 13.02.2018 to 12.02.2019 under the agreement entered into between the parties and further the Nagar Nigam may remain obligated to refund the amount collected towards advertisement tax for the period 01.07.2....
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....174 (2) evidently enumerates that the repeal/omission of the above statutes will not affect any tax due prior to 01.07.2017 nor will affect any such recovery proceedings which may be initiated as if this Act was not amended or repealed. 8. That In light of the aforesaid it is submitted that the said three agreements dated 18.01.2017 18.01.2017 and 20.04.2017 were prior to the Implementation of the U.P GST Act 2017 I.e.01.07.2017 and therefore as also stated in Section 174 (2) of the U.P GST Act 2017 the amendment/omission brought through the U.P GST Act 2017 would not affect the aforesaid tenders as the said advertisement tax were due prior to 01.07.2017. Thus the Respondent was lawfully justified in levying an advertisement tax on....
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....ds and Service Tax Act, 2017, the municipality did not even have the statutory competence to levy, impose or collect Advertisement Tax. 18. In the said view of the matter, the levy and collection of the Advertisement Tax under the provisions of Nagar Palika Parishad, Hathras (Vigyapan Kar Ka Nirdharan Aur Wasuli Viniyaman) Upvidhi, 2015 is clearly without legislative or statutory competence and is ultra-vires under Article 265 of the Constitution of India, U.P. Municipalities Act, 1916 and U.P. Goods and Service Tax Act, 2017. This Court has no hesitation in holding that the said Nagar Palika Parishad, Hathras (Vigyapan Kar Ka Nirdharan Aur Wasuli Viniyaman) Upvidhi, 2015 is without any legislative or statutory competence and, thus....