Selvel Media Services Private Ltd Vs Municipal Corporation of the City of Ahmadabad

The petitioner has challenged the Resolution no.928 dated 28th November 2018 and the Resolution dated 24th December 2018 passed by the Standing Committee of the respondent – Ahmedabad Municipal Corporation (for short “the AMC”) approving the revised rates of license fees for the advertising hoardings in private properties.The petitioner has also sought declaration that after the introduction of the Goods and Service Tax (for short “the GST”) with effect from 1st July 2017 in light of the 101st Amendment of the Constitution, the respondent Corporation cannot collect any tax on advertisement hoardings in the private properties and consequently cannot collect any license fees in garb of tax for the advertisement hoardings in the private properties.

HELD BY HC:

The license fee levied for granting license for placing advertising hoardings in private property is “fee” and not “tax” as the facts of the case of the petitioner are different than that of the facts before the Apex Court, the decision of the learned Single Judge of this Court dated 2nd February 2006 in SCA no.12603 of 2005 rendered in the facts of case of the petitioner itself cannot be said to be per incuram only on the ground that the judgment of the Apex Court in case of Commissioner, Hindu Religious Endowments(Supra) is not considered. With regard to the submissions made by both the sides in relation to the fixation of the license fees being arbitrary and excessive, it is pertinent to note that the rival claims made by both the sides cannot be looked into while exercising writ jurisdiction under Article 226 of the Constitution of India. The sufficiency of levy of fees falls within the powers prescribed under Sub-section-2 of Section 386 of the GPMC Act subject to control of the State Government as provided under Section 451 of the GPMC Act. We therefore, refrain from considering the submissions with regard to the alleged arbitrary and excessive license fees fixed by the respondents-Corporation. The petitioner if aggrieved by such fixation of license fees may take appropriate recourse in accordance with law by challenging the same before the State Government under the provisions of the GPMC Act.