HC dismissed writ petition challenging the power of Municipal Corporation

Case Details: Hubballi Dharwad Advertisers Association v. State of Karnataka - [2022] 138 taxmann.com 163 (Karnataka)

Judiciary and Counsel Details

• • Suraj Govindaraj, J.
  • U.G. Kattimani and Zameer Pasha, Advs. for the Petitioner. 
  • Shivaprabhu Hiremath and G.I. Gachchinamath, Advs. for the Respondent.

Facts of the Case

The petitioner was a registered association of advertising agencies. It challenged the demand of advertisement tax by the Municipal Corporation and filed writ petition before the High Court on the ground that there could be no demand for the advertisement tax after the enactment of GST.

High Court Held

The Honorable High Court observed that petitioner has not challenged relevant provisions but sought to quash demand notice relating to advertisement tax. The incidence of advertisement tax or advertisement fee is on license granted to petitioner to put up hoarding or make use of hoardings. The levy of advertisement tax and levy of GST do not amount to double taxation as transactions are distinct and incidence of tax in both are different. There would be no conflict between power to levy GST under GST law and power of Municipal Corporation to levy advertisement tax under Section 134 of Karnataka Municipal Corporations Act. Therefore, the writ petition was liable to be dismissed.