Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Madhya Pradesh Municipal Corporation Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Madhya Pradesh Municipal Corporation Act, 1956 (1 of 1956) |
Case(s) Referred | Referred Case 0 Referred Case 1 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Issue for consideration: 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 s.132 of the Madhya Pradesh Municipal Corporation Act, 1956 and thereby the demand (for payment of advertisement tax) is to be sustained. Madhya Pradesh Municipal Corporation Act, 1956 – s.132 – Appellants displayed their name board of respective business establishment which also depicted the nature of the respective vehicles which were sold and it would be inseparable part of the appellants’ business establishment – The demand notices were raised against the appellants for payment towards advertisement tax – Same were affirmed by the High Court – Propriety: Held: 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, it would drive the potential customer to such a situation where it would be neigh impossible 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 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 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 products dealt by the appellants and displayed on the board – In the instant case, on the demand being raised both the appellants had objected to the same and even before it came to be considered they approached the High Court – Therefore, the first respondent directed to examine the objections filed by the appellants afresh. [Paras 18, 19] |
Judge | Hon'ble Mr. Justice Aravind Kumar |
Neutral Citation | 2023 INSC 893 |
Petitioner | M/s Harsh Automobiles Private Limited |
Respondent | Indore Municipal Corporation |
SCR | [2023] 15 S.C.R. 28 |
Judgement Date | 2023-10-09 |
Case Number | 5362 |
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