B.S. Gupta Vs Commissioner (Karnataka High Court)
Karnataka High Court held that non-commercial educational signage is not covered within the Karnataka Municipal Corporation Act, 1976 and hence advertisement tax u/s. 134 not leviable on the same.
Facts- Petitioner is a registered educational institution engaged in imparting education through its college located within the jurisdiction of respondent No.1/Corporation. Vide the present petition, the petitioner the legality and validity of tax demand issued by respondent No.2/ Assistant Revenue Officer, BBMP under Section 134 of the Karnataka Municipal Corporation Act, 1976 for alleged advertisement displayed on the petitioner/institution on its premises.
Conclusion- Held that power to levy advertisement tax under Section 134 of the Act must be strictly confined to displays that fall within the statutory definition of advertisement under the above said section, which necessitates a commercial or promotional character. The signage in question or hoardings being a non-commercial institutional identifier does not meet this threshold. However, if the Corporation is of the view that signage of a particular size or form affects the urban landscape or public aesthetics, it is always open to the Corporation to frame uniform, reasonable and non-arbitrary regulatory policies in exercise of its planning or building control functions applicable across all establishments.
