2018 (5) TMI 170 - 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:
Challenge to the validity of a tender notice issued by the Municipal Corporation for realizing advertisement tax post the omission of certain sections under the U.P. Goods and Service Tax Act and the U.P. Municipal Corporation Act.

Analysis:
The petitioners argue that due to the omission of specific sections under the U.P. Goods and Service Tax Act and the U.P. Municipal Corporation Act, the Municipal Corporation lacks the authority to levy advertisement tax. They contend that only GST should be applicable, rendering the tender notice for advertisement tax invalid. The court acknowledges the need for a detailed examination of this issue, indicating the complexity and importance of the legal question raised.

The respondent's counsel is granted three weeks to file a counter affidavit, indicating a fair opportunity for the opposing party to present their arguments and evidence. Following this, the petitioners are given two weeks to file a rejoinder affidavit, ensuring a balanced exchange of information and legal arguments between the parties. The court schedules the next hearing after the specified time frame, demonstrating a structured and procedural approach to the case.

During the interim period until the next hearing, all further proceedings related to the auction in response to the impugned tender notice issued by the Nagar Nigam, Gorakhpur are stayed. This stay order prevents any immediate actions based on the tender notice, maintaining the status quo until the court can thoroughly examine the legal issues raised. The stay order signifies the court's cautious approach to prevent any potential irreparable harm or legal complications during the ongoing legal proceedings.