M/s Dm Advertisers Agency Thru. Its Managing Partner And 7 Ors. Versus State of U.P. And 3 Ors.
GST
2019 (2) TMI 1340 – ALLAHABAD HIGH COURT – 2019 (23) G. S. T. L. 162 (All.) , [2020] 73 G S.T.R. 245 (All)
ALLAHABAD HIGH COURT – HC
Dated:- 14-2-2019
Writ Tax No. – 562 of 2018
GST
Pankaj Mithal And Saumitra Dayal Singh JJ.
For the Petitioner : C.K.Parekh
For the Respondent : C.S.C.,Vashishtha Tiwari
ORDER
Heard Sri C.K. Parekh, learned counsel for the appellants. Sri Vashistha Tiwari has appeared for Mathura Vrindavan Nagar Nigam whereas learned Standing counsel for the State of U.P. The Additional Advocate General is also present but he has choosen not to add anything.
The petitioners are advertising companies. They have challenged the vires of the Mathura Vrindavan Nagar Nigam (Vigyapan Kar Ka Nirdharan and Wasuli Viniyaman) Upvidhi, 2017 as ultra-vires to the provisions of the U.P. Municipal Corporation Act, 1959 Central GST Act as well as U.P. GST Act and
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rcise of its powers under Sub-Section (2) (h) of the Section 172 of the U.P. Municipal Corporation Act which enabled it to impose tax on advertisement not being advertisement published in the news papers.
The aforesaid provision of Sub-Section (2)(h) of Section 172 of the U.P. Municipal Corporation Act was omitted vide Section 173 of the U.P. G.S.T. Act which was enforced w.e.f. 01.07.2017. It may be pertinent to note that not only the G.S.T. Act was implemented w.e.f. 01.07.2017 but even the provision of Section 173 thereof was enforced with effect from the said date. Thus, Section 172 (2) (h) of the U.P. Municipal Corporation Act stood omitted w.e.f. 01.07.2017.
In view of the aforesaid omission of Section 172 (2) (h) of the U.P. Municipal Corporation Act by the U.P. G.S.T. Act, all Municipal Corporations in the State of U.P. were denuded of the power to impose tax on advertisement after 01.01.2017. Once the said power of imposing tax on advertisement itself was taken away, no bye-
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f the U.P. G.S.T. Act which was enforced on 01.07.2017 as also due to the omission of Entry 55 of List II of 7th Schedule to the Constitution of India empowering the State to make bye-laws in respect of tax on advertisement vide Section 17 of the Constitution (101st Amendment) Act, 2016 enforced w.e.f. 16.09.2016.
On these very grounds a challenge was made to the byelaws pertaining to Advertisement Tax of the Nagar Palika Parisad, Hathras enforced w.e.f. 19.8.2017. A Division Bench of this Court of which one of us (Pankaj Mithal,J) was a member vide judgement and order dated 8.2.2019 passed in Writ Tax No. 577 of 2018 (M/s. Pankaj Advertising Vs. State of U.P., and 7 others) allowed the said writ petition and declared the said bye-laws to be ultra-vires not only to the Constitution but also to the provisions of the U.P. Municipalities Act and the U.P. GST Act on the aforesaid grounds.
In view of the above reasoning and the aforesaid decision, we hold that the Mathura Vrindavan Nagar
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