2018 (5) TMI 169 - HC - GST

Levy of advertisement tax - omission of clause (b) of sub-Section (2) of Section 172 and Sections 192 and 193 of the U.P. Municipal Corporation Act, 1959 - Held that - Prima facie, the issue requires scrutiny - further proceedings to remain stayed till next date of listing.

Summary

Issues:
1. Interpretation of Section 173 of the U.P. Goods and Service Tax Act, 2017, and its impact on the authority of the Municipal Corporation to levy advertisement tax.
2. Validity of the impugned tender notice dated 24.03.2018 issued by the Municipal Corporation for realizing advertisement tax.

Analysis:
1. The petitioner argued that due to the omission of clause (b) of sub-Section (2) of Section 172 and Sections 192 and 193 of the U.P. Municipal Corporation Act, 1959, the Municipal Corporation no longer has the power to levy advertisement tax, with only GST being applicable. The contention was that the tender notice for advertisement tax is legally flawed. The court acknowledged the need for a detailed examination of this issue, indicating a prima facie recognition of the complexity involved in interpreting the relevant statutory provisions.

2. The respondent, represented by Shri Abhinav Ojha, requested and was granted three weeks to file a counter affidavit. The petitioners were given an additional two weeks to file a rejoinder affidavit. The court ordered a stay on further proceedings, including the auction pursuant to the impugned tender notice, until the next listing date. This procedural step ensures that both parties have adequate opportunity to present their arguments and evidence before the court makes a decision on the validity of the tender notice and the Municipal Corporation's authority to levy advertisement tax.