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When the State was divested of the power to make laws in respect of tax on advertisement obviously the Municipal Corporations also ceased to have power to impose any tax on advertisement.

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Section 9 of the CGST Act, 2017—Levy of GST -- The Petitioners are advertising companies. They have challenged the vires of the Mathura Vrindavan Nagar Nigam 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 Articles 14 and 19 of the Constitution of India. They submitted that the aforesaid bye-laws were notified in the Official Gazette and were enforced w.e.f. 6.1.2018 but on the said date the Municipal Corporation had no authority in law to impose any advertisement tax. Advertisement tax has been levied in view of Section 172 (2) (h) of the U.P. Municipal Corporation Act which stood deleted w.e.f. 1.7.2017 by virtue of Section 173 of the U.P. GST Act.

Held that:-The Hon’ble High Court held that the Mathura Vrindavan Nagar Nigam Upvidhi, 2017 to be ultra-vires, in as much as, Entry 55 of list II of the VII Schedule to the Constitution empowering the State Government to make bye-laws in respect of tax on advertisement stood deleted vide Section 17 of the Constitution 101st (Amendment) Act w.e.f. 16.9.2016 and at the same time Section 172 (2) (h) of the U.P.Municipal Corporation Act authorizing framing of bye-laws in respect to the tax on advertisement also stood omitted by virtue of Section 173 of the U.P. GST Act w.e.f. 1.7.2017. — DM Advertisers Agency Thru. Its Managing Partner And 7 Ors. Vs. State of U.P. And 3 Ors. [2019] 9 TAXLOK.COM 028 (Allahabad)