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2011 (4) TMI 1416 - ALLAHABAD HIGH COURTWrit Petition by advertising agencies challenging the vires of the Municipal Corporation (Assessment and Collection of Tax on Advertisement) Rules, 2009 (the Rules) mainly on the ground that the rule is ultra vires to the constitution. Rule has been also impugned being framed in contravention of statutory provisions contained in the U.P. Municipal Corporation Act, 1959 (the Act.) - The State Government in pursuance to power conferred by Section 227 read with Section 192, 219, sub section (1) of Section 540 and Section 550 and Section 21 of the U.P. General Clauses Act (General Clauses Act) and in super session of all the previous rules and order with regard to advertisements had notified the impugned Rules on 27.2.2008 as required by sub Section (2) of section 540. The Rule has been enforced from the date of publication in the Gazette and has been extended to every Municipal Corporation of Uttar Pradesh. A plain reading of the rule shows that the purpose of the rule is to impose 'advertisement tax' and provide the mode of recovery and initiate penal action in the event of contravention of rules by the advertising agencies as well as other related persons. HELD THAT:- The impugned Rules could not have been framed by the Government in the manner it has been done. At the most, the proposed Rule or the Model Rules could have been sent to the Corporation and it was for the Corporation to consider the proposal of State Government in pursuance to power conferred by Section 202 and thereupon the Corporation could have directed for imposition of tax w.e.f. the date to be specified in resolution and consequential notification issued u/s 203. In the event of failure on the part of Corporation, government has got option to take recourse in pursuance to power conferred u/s 205 and 206. The other issues are also decided and answered. That State Government has got legislative competence to frame rules but subject to fulfilment of necessary conditions and procedure prescribed under Chapter IX. That Government could not have framed impugned rules for all the Municipal Corporations without taking recourse of not only Section 206 but other statutory provisions contained in Chapter IX of the Act. That Impugned rule 209 is invalid and ultra vires to the Act being framed without following the provisions of Sections 199 to 203 of the Act and other statutory provisions. Provision contained in the Rule 2009 requiring the owner of building to face penal consequences is invalid and violative of Section 195 of the Act.
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