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2015 (1) TMI 1497 - HC - Indian LawsImposition of 'advertisement tax' other than the advertisements published in newspapers under Section 132 (6) (l) of the Madhya Pradesh Municipal Corporation Act, 1956 - HELD THAT:- It cannot be agreed that the scheme propounded by the byelaws is contrary to any of the provisions of the Act of 1956. The fact that collection of tax is made through an agency, which necessarily has to work under the authority of the local body, cannot contravene the provisions of Article 265 of the Constitution. It cannot be agreed that this mode of collection is contrary to the Act of 1956 and the intention of the legislature - Reading of Section 133 of the Act of 1956 will show that it merely deals with the procedure for imposition of tax. The procedure for assessment, collection, remission, refund and recovery of taxes, cesses etc. is provided by the byelaws framed by the Municipal Corporation under Section 427 (3) of the Act of 1956. In the case in hands, Byelaws have been framed for assessment and collection of tax under Section 427 (3) of the Act of 1956; and thus, the provisions of Sections 173 and 174 of the Act of 1956 would not be applicable - The Byelaws of 1978 are framed under Section 427 of the Act of 1956 and Section 431 of the Act of 1956 provides that all byelaws shall be published in the Gazette and the effect of these provisions is that the Byelaws of 1978 shall become part of the Act of 1956. The Government of Madhya Pradesh has accepted and approved the Byelaws of 1978 framed by the Municipal Corporation, Indore and the same came into force with effect from 18.08.1978. Thus, no case is made out to quash the Resolution No.167 dated 24.08.2011 and Resolution No.233 dated 13.10.2011 passed by the Mayorincouncil. Nor any case is made out to quash the work order dated 20.10.2011 issued by respondent No.2 – Indore Municipal Corporation in favour of respondent No.3 and the agreement by which respondent No.2 awarded the contract to respondent No.3 for collection of the 'advertisement tax'. Considering the fact that the procedure, as prescribed under the Byelaws of 1978, has not been followed by the Municipal Corporation while directing respondent No.3 – contractor to recover 'advertisement tax' on their behalf, we quash the demand, which are subject matter in this batch of writ petitions and direct the Municipal Corporation to issue fresh demand regarding levy and collection of the 'advertisement tax', as per the rules of Byelaws and when the demand is finalized by the Municipal Corporation, then only the same may be given to respondent No.3 – contractor to recover it. The writ petitions are allowed in part.
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