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TMI Blog2023 (10) TMI 800X X X X Extracts X X X X X X X X Extracts X X X X ..... h came to be approved by the State Government under Section 430 of the Act and it was duly published in the official gazette on 18.08.1978 as required under Section 429 and 431 of the Act of 1956. The respondent-Corporation is tracing its source of power to levy and collect advertisement tax under clause 4, 5 and 6 of the bye-laws of 1976. Whether the display boards or sign boards or name boards as displayed by the appellants would partake the character of advertisement so as to attract Section 132 of the Act and thereby the demand is to be sustained? - HELD THAT:- This Court in the case of ICICI BANK ANR, VERSUS MUNICIPAL CORPORATION OF GREATER BOMBAY ORS. [ 2005 (8) TMI 666 - SUPREME COURT ] has held that advertisement should have some commercial exposition or the soliciting customers to the product or service prominently shown in the advertisement. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re 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 the company and the nature of its business and its products, appellant company has put up a name board displaying its trade name within the business premises displaying the products and services in which the appellant is dealing and as such the notice dated 04.01.2012 came to be issued by the second respondent demanding advertisement tax of Rs.1,31,137/- and yet another notice dated 04.01.2012 of Rs.51,000/- in respect of another premises where similar board had been put up by the appellant. These notices were duly replied to by the appellant by objecting to the same and contending inter alia that it was not displaying any advertiseme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 product and providing information of the said product or service at a particular place would be an 'advertisement' whereas depicting the name of the business establishment and the products being dealt by it would only be an information to the general public and such display of information would not amount to advertisement and as such it would not be liable to be taxed. 6. They would also contend that imposition of "advertisement tax" on sign boards displaying the name and products of the business establishment is violative of Article 19(1)(a) and 19(1)(g) of the Constitution of India. 7. The learned counsel appearing for the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eek 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 Corporation of Greater Bombay & Ors. (2005) 6 SCC 404. 3. Municipal Corporation of Greater Bombay v/s. Bharat Petroleum Corporation Ltd. (2002) 4 SCC 219. 4. Municipal Corporation of Greater Bombay & Ors. v/s. Ratiloku Shetty AIR 2002 Bom 94. 5. Shri Krishna Pictures v/s. Administrator, Indore Municipal Corporation, Indore 1980 JLJ 530. 9. A plain reading of the impugned order would clearly indicate that the Writ Petitions filed by the appellants herein before the High Court was dismissed by relying upon the judgment of Bharti Airtel vs. State of Madhya Pradesh rendering in W.P. No.2296 of 2012 on 12.01.2015 by arriving at a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided 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 with reference to the gross annual letting value of the buildings or lands, called the property tax, subject to the provisions of Sections 135,136 and 138. (b) a water tax, in respect of lands and building to which a water supply is furnished from or which are connected by means of pipe with municipal water works. (c) a general sanitary cess, for the construction and maintenance of public latrines and for removal and disposal of refuse and general cleanliness of the city. (d) a general lighting tax, where the lighting of public streets and places is undertaken by the corporation. (e) a general fire tax, for the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 on pilgrims resorting periodically to a shrine within the limits of the Corporation; (j) a tax on persons occupying houses, buildings or lands within the limits of the Corporation according to their circumstances and property xxxx (1) a tax on advertisement other than advertisements published in newspapers." 14. A perusal of the above provision would indicate that a tax on "advertisement" other than the advertisement published in newspapers, can be imposed. Sub-section (1) of Section 133 of the Act provides that Corporation may, by a special meeting bring forward a resolution to propose imposition of any tax un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 or practice of drawing public attention to goods, services, events etc., as by the distribution of printed notices, broadcasting, etc. 2) the business that specializes in creating such publicity, 3) advertisements collectively; publicity. (e) THE CHAMBERS DICTIONARY Advertisement - the act of advertising; a public notice with the purpose of informing and/or changing public attitudes and behavior; a short performance recorded for radio, T.V. etc. to advertise goods or services; news. 16. This Court in the case of ICICI Bank and Another Vs. Municipal Corporation of Greater Bombay (2005) 6 SCC 404 has held that adverti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 are able to have access to the money in their account even on holidays and emergency. The ATM centres have a signboard over them that are illuminated and tell about the fact that there lies the ATM centre of the Bank in that premises. The fact that there is an ATM centre in the premises tells that the appellant Bank is providing automatic teller machine service there and hence the service provider is clearly identified. The communication in this is directed to the account-holders and also to prospective account-holders. The kind of information supplied of the location of the service provided may also be construed of commer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 Corporation or its agency to demand tax for display of information through name boards or display boards. It would emerge from the statutory provisions noted hereinabove that the legislative intent was never to impose tax liability on sign boards but only on advertisement. Prima facie, the sign boards are display boards displayed by the appellants' companies in the instant appeals would indicate that they have displayed on their respective premises the general information to the public about the products being dealt with by them and it would not reflect any soliciting of customers or induce the general public to buy the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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