Saffron Communication Pvt Ltd And Another Vs State of U.P. And 3 Others (Allahabad High Court)
The Allahabad High Court heard a writ petition filed by a company engaged in hosting advertisements through hoardings and signage within the Ghaziabad municipal limits. The petition challenged a recovery certificate dated 12 June 2019 demanding ₹2,55,78,080 towards advertisement tax, along with a demand notice from September 2018. The petition also sought refund of advertisement tax deposited for the period 1 July 2017 to 12 February 2018. An earlier writ petition had been dismissed in July 2019 on the ground that the petitioner had civil suits pending, one containing an injunction. The Supreme Court later set aside that dismissal, observing that the writ petition raised issues distinct from those in the suits, two of which had been withdrawn. The matter was remanded to the High Court for decision on merits.
The petitioner had entered into three agreements with the Nagar Nigam, Ghaziabad for the period February 2017 to February 2019, which required payment of premium and advertisement tax annually. Advertisement tax was deposited in advance for the first year ending 12 February 2018. During this period, significant statutory changes occurred. After the 101st Constitutional Amendment and enactment of the U.P. GST Act, 2017, the legislative competence to levy advertisement tax was removed. Sections 173 and 174 of the U.P. GST Act omitted provisions in the U.P. Municipal Corporation Act that earlier enabled municipalities to levy advertisement tax.
