Transitional provision — In the instant case, Petitioners are advertising companies and are aggrieved by the demand of advertisement tax imposed by the Nagar Nigam, Kanpur on displaying advertisement through hoarding within its jurisdiction. Petitioner submits that w.e.f 01.07.2017, the provision to levy advertisement tax has been deleted and the UP GST Act, 2017 has come into force, so no advertisement tax can be levied.
Held that— Power to levy advertisement tax was contained in Section 172(2)(h) of the Municipal Corporation Act, 1916 which stood deleted w.e.f. 1.7.2017 by virtue of Section 173 of U.P. GST Act
Even the power of the State Government to legislate regarding advertisement tax as provided under Entry 55 of List II of the VII Schedule of the Constitution of India also stood deleted w.e.f. 12.9.2016 by the Constitution (101 Amendment) Act, 2016. Article 265 of the Constitution of India mandates that no tax shall be levied or collected except by the authority of law, therefore, the authority to levy any tax, much less the advertisement tax must be derived from the Statutes. There is, therefore, neither any power left with the State Government or the Municipal Corporation to legislate about the imposition of tax on advertisement. Since, after 12.9.2016 or from 1.7.2017 the Nagar Nigam, Kanpur ceased to have any jurisdiction to impose and realize tax on advertisement, the demand of tax on advertisement from the petitioners after 1.7.2017 is held to be illegal and without jurisdiction. Notices of demand impugned in the petition are quashed and the amount, if any, of the advertisement tax deposited by the petitioners for the period 1.7.2017 onwards is directed to be refunded to the petitioners. Writ Petition allowed.
— Selvel Media Services Private Limited And 11 Others Vs. State of U.P. And 4 Others [2019] 12 TAXLOK.COM 018 (Allahabad)