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TMI Blog2017 (10) TMI 1642X X X X Extracts X X X X X X X X Extracts X X X X ..... he petitioner is a Company registered under the provisions of the Companies Act, 1956 having registered Office at Civil Lines, Delhi and is engaged in the business of manufacturing wide spectrum of electronic / electrical products. The petitioner Company has stated that for the purposes of bringing availability of the petitioner's products to the knowledge of common public name boards, sign boards and flex boards are displayed by the petitioner's dealer, distributors and retailers at their respective premises and the action of the Indore Municipal Corporation, Indore in imposing advertisement tax is bad in law. Various grounds have been raised by the petitioner Company and it has been argued that the advertisement tax cannot be levied or imposed based upon the resolution dated 28/4/2011 and 13/10/2011 passed by the Mayor-in-Council. It has also been stated that the resolution dated 10/8/1973 passed by the Indore Municipal Corporation, Indore is illegal, ultra vires, and unconstitutional. Various other grounds have also been raised in the Writ Petition and reliance has been placed upon the following judgments : Name of parties Citation Ram Sumer Vs. State of U.P. (1985) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h & others), (7) Writ Petition No.3744/2012 (Som Distilleries & Breweries Limited v. Commissioner, Municipal Corporation, Indore & others), (8) Writ Petition No.4081/2012 (M/s. Samsung India Electronics Private Limited v. The State of Madhya Pradesh & others), (9) Writ Petition No.4692/2012 (Videocon Industries Limited v. The State of Madhya Pradesh & others), (10) Writ Petition No.4693/2012 (Kail Limited v. The State of Madhya Pradesh & others), (11) Writ Petition No.5116/2012 (Nokia India Limited v. The State of Madhya Pradesh & others), (12) Writ Petition No.5160/2012 (M/s. Ramani Ice Cream Company Limited v. Assistant Commissioner, Indore Municipal Corporation, Indore & another), (13) Writ Petition No.5680/2012 (M/s. Heidelberg Cement India Limited v. The State of Madhya Pradesh & others), (14) Writ Petition No.5681/2012 (Birla Corporation Limited v. The State of Madhya Pradesh & others), (15) Writ Petition No.5814/2012 (Vadilal Enterprises Limited v. Indore Municipal Corporation & another), (16) Writ Petition No.6134/2012 (The India Cements Limited v. The State of Madhya Pradesh & others), (17) Writ Petition No.6207/2012 (M/s. Pidilite Industries Limited v. The State of Madhya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he system of assessment to be adopted. 5. As per Section 132 (6) (l) of the Act of 1956, the Corporation is empowered to levy tax on permissible display or advertisements on public place or on private land or building at such rate and from such date, as the State Government may direct by notification in the official gazette and in such manner as laid down in the Act of 1956 and as may be provided in the rules made by the State Government under Section 427 (Bye laws) of the Act of 1956. The levy, assessment and collection of taxes under Chapter XII of the Act of 1956 are to be in accordance with the provisions of the Act of 1956 and the Rules and bye-laws made thereunder. The provisions in relation to the imposition of 'advertisement tax' has been specified under Section 132 (6) (l) of the Act of 1956, which reads as under: - "132. Taxes to be imposed under this Act.- (6) In addition to the taxes specified in sub-section (1), the Corporation may, for the purpose of this Act, subject to any general or special order which the State Government may make in this behalf, impose any of the following taxes, namely:- (l) a tax on advertisement other than advertisements pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le shall be used to display any advertisement in a manner, form or method, different from that approved by the Municipal Commissioner. (ii) The advertisement boards or notices carried on any vehicle shall in no case project beyond the length and width of the vehicle nor shall they be so placed as to obscure the registration marks or the obligatory lamps or to hamper the rider or driver of any vehicle. (3) (a) The advertisement hoardings: (i) shall not be more than 9 metres high from the ground level. (ii) shall not project beyond the general line of buildings in the street or more than 0.30 metre beyond the building line in the streets for which a building line has been prescribed. (iii) shall not be within 27 metres from any public park or pleasure promenade. (iv) shall not in the opinion of the Municipal Commissioner be disproportionately large in comparison with the size of the land or building on which they are displayed. (v) No advertisement hoardings cinema and poster-boards, and similar structures used for the purpose of advertising shall as a general rule be allowed to be put up along the promenades or abutting on public parks and recreation grounds, pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. Refusal of Permission. - Notwithstanding anything in these byelaws permission to exhibit, erect, retain or display an advertisement may be refused on the ground of cleanliness, safety or public order and in such a case the persons for refusal shall be communicated to the applicant in writing. 10. Removal of advertisements. - (1) The Municipal Commissioner shall be entitled to require the owner or occupier of any property or the persons, firm or institution to remove an advertisement exhibited without permission. (2) The order under clause (1) shall be in writing and served on the person concerned with the offending advertisement. (3) The person on whom the order under clause (1) is served shall comply with the same within the period specified in the order. (4) In case of non-compliance the Municipal Commissioner may take all necessary steps to remove the advertisement and the cost incurred in this behalf shall be recovered from the person against whom the order under clause (1) is made. 11. Appeals. - Any person aggrieved by an order of the Municipal Commissioner under these byelaws may appeal to the Corporation within thirty days from the date of such order. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property of the person concerned; (4) by attachment and sale of his immovable property; (5) in the case of octroi or toll, by the attachment and sale of goods and vehicles; (6) in the case of property tax, by attachment of rent due in respect of the property. (7) by a suit. 173. Presentation of bill for taxes and other demands.- (1) When any amount declared by or under the provisions of this Act to be recoverable in the manner provided in this chapter, or payable on account of any tax imposed within the limits of the city shall have became do, the Commissioner shall, with the least practicable delay cause to be presented to any person liable for the payment thereof a bill for the sum claimed as due. (2) Contents of bill.- Every such bill shall specify- (a) the period for which: and (b) the property, occupation or thing in respect of which the sum is claimed, and shall also give notice of- (i) the liability incurred in default of payment; and (ii) the time within which an objection may be preferred as against such claim. 174. If bill not paid within 15 days notice of demand to issue.- (1) If the sum , for which a bill is presented as aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be heard had determined unless- (a) a written objection has been made and determined in accordance with the provisions of this act; and (b) the amount claimed from the appellant has been deposited by him in the municipality office, and a receipt thereof has been filed with a memo of appeal. 189. Taxation not to be questioned except under this Act.- (1) No objection shall be taken to any valuation or assessment, nor shall the liability of any person to be assessed or taxed be questioned in any other manner or by any other authority than as provided in this Act. (2) The Government may make rules under this Act regulating the refund of taxes and such rules may impose limitations on such refunds. (3) No refund of any tax shall be claimed by any person otherwise than in accordance with the provisions of this Act and the rules and the byelaws made there under. 189-A. Recovery of taxes by public auction or private contract.- Notwithstanding anything contained in this Act, the Corporation may, by public auction or private contract lease the recovery of any of the taxes and fees which may be imposed under this Act, subject to the conditions and limitation, if any, pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , refund and recovery of taxes, cesses etc. is provided by the byelaws, which can be made by the Corporation under Section 427 (3) of the Act of 1956. 10. On 01.04.1973, 'advertisement tax' was imposed by the Corporation. After consideration of objections from the public, 'advertisement tax' was made effective in the City of Indore from the date of publication in official gazette i.e. 10.08.1973. On 31th May, 1978, byelaws were framed for assessment and collection of 'advertisement tax'. Validity of implementation of 'advertisement tax' was upheld by a Division Bench of this Court in the case of Shri Krishna Pictures, Indore & others v. Administrator, Indore Municipal Corporation & another reported in 1980 JLJ 530; paragraphs 4 and 5 are relevant, which reads, as under: - "4. The learned counsel for the petitioners also contended that the byelaws for assessment and collection were made on 18th August, 1978 and that before this date the tax was inoperative because no machinery existed for assessment or collection of tax. A taxing statute has to provide not only for imposition of the tax with which it deals but also for its assessment and collect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the least practicable delay cause to be presented to any person liable for the payment thereof a bill for the sum claimed as due. (2) Contents of bill.- Every such bill shall specify- (a) the period for which: and (b) the property, occupation or thing in respect of which the sum is claimed, and shall also give notice of- (i) the liability incurred in default of payment; and (ii) the time within which an objection may be preferred as against such claim. 174. If bill not paid within 15 days notice of demand to issue.- (1) If the sum , for which a bill is presented as aforesaid, is not paid and no objection has been prefer within 15 days from the presentation of the bill, the Commissioner may, serve upon the person to whom such bill has been presented a notice demand in the form prescribed by byelaws. (2) For every notice of demand a fee shall be charged at the rate specified in the byelaws and shall be payable by the said person, and the fee shall be included in the costs of recovery. 175. In what case warrant may issue.- (1) If the person on whom a notice of demand is served under sub-section (1) of section 174 does not within thirty days of the service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As earlier pointed out by us, the procedure and machinery for assessment of a tax from its very nature depends upon the nature of the tax. If the tax is a simple impost for which no separate procedure for assessment is necessary, sections 173 and 174 can be used not only for recovery but also for assessment of the tax in the manner indicated above. As the procedure under these sections is quasi-judicial in nature and is coupled with a safeguard of appeal, it cannot be said that the procedure is administrative and does not fulfill the requirement of the Constitution. In Assistant Collector, C.K. v. N.T. Co. of India Limited (supra) the Supreme Court inferred a quasi-judicial procedure for assessment from rule 10-A of the Central Excise Rules which apparently dealt with residuary powers for recovery of sums due to Government and did not expressly provide any procedure for assessment. Similarly, in Roopchand v. K.U.M. Samiti, Raipur (supra) a quasi-judicial procedure for assessment was inferred from section 20 of the Madhya Pradesh Agricultural Produce Markets Act, 1960 and rule 56 made thereunder although none of these provisions expressly provided for assessment of the fee imposed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Municipal Corporation, as prescribed under Sections 173, 174 and 175 of the Act of 1956 and these powers cannot be delegated under Section 189-A of the Act of 1956. It is also submitted that action of respondent No.3 in taking physical action of removal of advertisements by muscle power is illegal, void and without jurisdiction, because no such power can be conferred on the contractor. 16. It is also submitted by Shri A.M. Mathur, learned Senior Counsel for the petitioners that no 'advertisement tax' can be recovered from the petitioners without determination of the essential jurisdictional facts by the Municipal Corporation as to (a) whether the glow-sign board / sinage is, in fact, an advertisement; (b) that it is the petitioner, who has exhibited / erected / fixed / retained / displayed the same; (c) its location; and (d) its contents. He submitted that in the present batch of writ petitions, the power to levy of tax involves its levy, assessment and then recovery and all the three stages cannot be entrusted to the private contractor under Section 189-A of the Act of 1956. 17. The argument of the learned Senior Counsel for the petitioners is that the expres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Society Limited, Bhopal v. State of MP & another reported in 1995 MPLJ 176. In the Full Bench judgment in the case of Sindhi Sahiti Multi Purpose & Transport Co-operative Society Limited, Bhopal v. State of MP & another (supra), it is held in paragraphs No.18 & 24, as under: - "18. Further question is whether the mode of collection by auction is not permissible? Part X- Chapter XXXVII of the Municipal Corporation Act, 1956 deals with framing of Byelaws: 427. Byelaws. - The Corporation may, and if so required by the Government, shall make byelaws consistent with the provisions of this Act and the rules made there under for carrying out the provisions and intentions of this Act, and in particular and without prejudice to the generality of the foregoing power, it may, make byelaws to regulate all or any of the following matters namely:- xxxx xxxx xxxx xxxx (3) Assessment, collection, remission, refund and recovery of taxes, cesses, etc. - (c) the date, place and manner of paying tax or installment of tax payable under this Act and the person to whom it shall be paid". Section 430 invests State Government with power to sanction which reads as under: "430. Byelaws to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Council; (e) all moneys raised by any tax levied for the purposes of this act; (f) all fees payable and levied under this Act; (g) all moneys received by way of compensation or for compounding offences under the provisions of this Act; (h) all moneys received by, or on behalf of the Council from the State Government or private individuals by way of grant or gift or deposits; and (i) all interest and profits arising from any investment or from any transaction in connection with, any money belonging to the Council; (2) Nothing in this section of in this act shall affect any obligations of a Council arising from a trust legally imposed upon or accepted by a Council. (3) A Council may, for the purpose of efficient discharge of any of the duties imposed upon it under clauses(d), (j) and (l) of section 123 by a resolution passed in that behalf, earmark for each such purpose a specified portion of its income every year for a specified number of years for being credited to a fund called the Public Utility Scheme Fund. The amount so credited shall be expended for the purposes for which it has been earmarked. Section 160. Lease of levy of tolls, market dues and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same time, the same agent is assured of remuneration. We are unable to agree that the scheme propounded by the bye-laws is contrary to any of the provisions of the Act. 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. There is no specific provision in the Act requiring collection of tax to be made only through permanent employees of the local body. Arrangement for collection is left to be made by the local body subject to the broad scheme of the Act. The local body has made bye-laws providing for collection of tax by auction. We are unable to agree that this mode of collection is contrary to the Act and the intention of the legislature. We are also unable to agree that the contractor and the staff are beyond the restrictions of law. There is no data in support of the contention that the arrangements secured by the contractor would fetch him undue profit. On the other hand, the data provided by the local body shows that the mode of auction is really beneficial to the local body. We, therefore, reject the contention of the petitioners and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y or rescind any notifications, orders, rules or bye-laws so issued. Thus, if fee is prescribed by a bye-law, it can be very amended in the same manner as the bye-laws were framed. The bye-laws are framed under sub-section (3) of section 357 of the Act. If the Municipal Council desires to amend the bye-laws for enhancing the fee or making a provision therein, the respondent Nagar Panchayat ought to have passed a resolution for amending the byelaws and should have sent it to the State Government for its approval. If the Government has approved and accepted the proposal then the procedure for amending the bye-laws should be followed in the same manner as the bye-laws were framed. Without any amendment in bye-laws the Nagar Panchayat or Municipal council is not empowered to enhance the rate of fee under the provisions of section 129 of the Act. The enhancement of fee by the respondent Nagar Panchayat in excess of fee prescribed in the bye-laws is void and cannot be recovered. The respondents are entitled to recover the fee as mentioned in the byelaws. Unless the bye-laws are amended, the respondents are not empowered to recover higher rate of fee than mentioned in the bye-laws. This e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he State Government may make. Powers had been conferred upon the Municipal Council and the manner of collection is provided under the Rules of 1996. Rules 3 to 7 of the Rules of 1996 are reproduced below:- "3. Every person, businessman, establishment and the license holder under the Madhya Pradesh Krishi Upaj Mandi Adhiniyam, 1972 (No. 24 of 1973), shall be responsible to collect the terminal tax or the goods at the rate specified in the Schedule, if he himself exports any goods as shown in the schedule or sale for the purpose of export. 4. The person, businessman, establishment or license holder, as mentioned in Rule 3 shall deposit in the Municipal Treasury the amount of terminal tax collected during the last month on the goods exported from the Municipal limits, through their shop establishment alongwith the return up to 10th day of every month. 5. If on the examination of the return, the Municipal Commissioner or the Chief Municipal Officer, as the case may be required any additional information, he shall give the notice to the person concerned, businessman, establishment or in case of Krishi Upaj Mandi, its license holder, and they shall submit such information within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the rate of five percent per month and in case of submission of wrong return, penalty equal to ten times of the tax shall be payable. However, with the approval of the State Government, Municipal Council may reduce the penalty. 6. Question involved in the appeal is whether contractor can be empowered to recover the terminal tax. The contractor can recover the tax only when after final assessment order for recovery is passed against the assessee and such amount may be collected by the Contractor. Such contract can be auctioned. But recovery by contractor shall be in accordance with the agreement and as per Rules of 1996. Contractor is required to recover the dues under the Rules of 1996. However, if the assessee refuses to pay the amount to the contractor, contractor is not empowered to take any coercive action. On failure to deposit tax due by the assessee, contractor is required to report the matter to the Authorities of the Municipal Council and the Municipal Council shall initiate proceedings for recovery of the tax under the provisions of the Act. Chapter VIII which begins from Section 164 of the Act relates to recovery of Municipal Claims. Section 165 confers power upon t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Council ;and Municipal Council then shall proceed to recover the tax by method strictly under Chapter VIII of the Act. However, we clarity that before the order of final assessment is passed, contractor will not be entitled to recover from the assessee any amount of tax which has not been determined finally. Rules and the Act do not empower the contractor to enforce coercive recovery." 24. Moreover, the right to make coercive recovery cannot be read into section 189-A. In Writ Petition No.2725/2012, the petitioner has moved IA No.3356/2014, pointing out with reference to specific documents and FIR that by way of coercive action, the private respondent has damaged the petitioner's board installed at petitioner's own store and has caused loss of Rs.8,00,000/- (rupees eight lakh) to the petitioner. The Municipal Corporation in its letter to the Police Station In-charge has categorically mentioned that coercive recovery has not been made by Municipal Corporation and M/s. Shauryaditya Advertiser (respondent No.3) has resorted to the said illegal action. The letter dated 04.06.2014 annexed as Annexure A/4 to the said IA No.3356/2014 in Writ Petition No.2725/2012 at page No.4, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wnership of the advertisement or the premises where it has been erected; correctness of measurements of the same; and at whose instance, the advertisement has been exhibited / erected / fixed or retained or displayed. It is also submitted that the petitioner has several retailers who display on their own, the petitioner's name at their premises by way of displaying signage etc. at various sites, buildings, structures, commercial premises etc. in order to display the advertisements at their premises /outlet in order to inform the customers about the presence of the product of the petitioner in their shops / premises. These sinage and display boards are not exhibited / erected / fixed / retained or displayed by the petitioner, but are the function and property of the retailers, who display the same on their own and in any event, the petitioner cannot be called upon by the respondents to pay any 'advertisement tax'. It is also submitted that as per the byelaws of the Indore Municipal Corporation, 'advertisement tax' is payable by a person, who exhibits / erects, fixes or displays the advertisement at his location / premises. The petitioners have filed affidavit sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is the States which were protected as a result of the declaration for otherwise on the conclusion that the impugned Acts lacked legislative competence the result would have been that any tax collected would have become refundable as no State could retain the same because levy would be without the authority of law and contrary to Article 265 of the Constitution. At the same time, it was clearly stipulated that the States were restrained from enforcing the levy any further. The words used in Article 265 are levy and collect. In taxing statute the words levy and collect are not synonymous terms, (refer to Assistant Collector of Central Excise, Calcutta Division v. National Tobacco Company of India Limited (1972) 2 SCC 560 at page 572, while 'levy' would mean the assessment or charging or imposing tax, 'collect' in Article 265 would mean the physical realisation of the tax which is levied or imposed. Collection of tax is normally a stage subsequent to the levy of the same. The enforcement of levy could only mean realisation of the tax imposed or demanded. That the States were prevented to recover the tax, if not already realised, in respect of the period prior to 25th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l v. State of MP & another (supra), by which the constitutional validity of the byelaws, permitting collection of terminal tax by auctioning the rights to collect it, was delivered in the context of 'Terminal Tax', has no application in the present case. In the present case, the private contractor has sent bills without any recourse or remedy of appeal or revision before the Corporation. In case of 'advertisement tax' existence of quasi judicial machinery is indispensable. 32. The bills sent by the contractor - M/s. Shouraditya is the action of the own exercise and imagination, without any approval or participation of the Municipal Corporation. The petitioners have no opportunity to oppose the bill and to seek its determination by an independent quasi judicial machinery / authority. Such a demand is violative of principles of natural justice and deserves to be quashed on this short ground alone. The fact that the contractor has raised the bills without intervention of the Municipal Corporation is evident from paragraph No.2 of the legal notice dated 21st February, 2012 (Annexure P/6 in Writ Petition No.2468/2012), which reads as under: - "2. My client submits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or and the constitutional validity of Section 189-A of the Act of 1956. He drew our attention to various provisions of the Act of 1956 and the Byelaws of 1978 framed by the Indore Municipal Corporation, which came into force with effect from 31st May, 1958. He submitted that recovery of 'advertisement tax' can be made according to the Byelaws of 1978 and has further denied that there is no provision in the Byelaws of 1978 for granting or seeking to recover 'advertisement tax'. It is submitted that on the basis of Section 189-A of the Act of 1956, the Corporation is empowered to auction for recovery of 'advertisement tax' through a contractor. It is also submitted that by virtue of the powers conferred under Section 131 of the Act of 1956, a resolution was passed by the Indore Municipal Corporation in respect of the imposition of 'advertisement tax' and 'advertisement tax' has been levied in the entire township of Indore within the municipal limits. It has also been stated that in order to recover 'advertisement tax', tenders were floated and the offer of the highest bidder was accepted on behalf of the Indore Municipal corporation and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have filed any valid permission granted by the Indore Municipal Corporation. He also submitted that an appeal is provided against the demand, but none of them have filed an appeal before the Appellate Authority. He also pointed out that Office of Airtel is situated at Metro Tower, Indore and advertising its products all over the Office and such type of advertisements cannot be permitted unless and until they pay 'advertisement tax'. 38. In reply, it is submitted that huge area for office has been occupied by the company. Total area of office is about 60,000 square feet having six entrance. To know their location, they put sign board / kiosk on some part of their office, which is at their own premises, and therefore, no 'advertisement tax' can be levied by them, which is less than 10% of the total space of the Office. 39. He submitted that after awarding contract to the private contractor, employee of respondent No.3 along with its number of persons came to the premises of the petitioner and started demanding 'advertisement tax'. On failure to pay 'advertisement tax, persons of respondent No.3 started removing sign boards etc. and along with them, n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advertisement. From clause (1), it appears that it is this amount which is required to be paid by way of advance in the Office of Municipal Corporation. Clause (4) further lays down that the permission so granted shall be produced by the applicant and the tax shall be deposited and a duplicate copy of every advertisement permission so granted and the tax paid shall be sealed, if the token of tax paid and permission granted. 43. The contention advanced that they have no provision for raising objection against the amount of tax determined. Sub-Clause (2) of Clause (6) lays down that Municipal Corporation shall within four days from the date of receipt of the application intimate the applicant the amount of tax payable on intended advertisement. There appears to be in-built provision in Clause 6 (2) to raise objection, but there is no prohibition that the objection cannot be raised. The provisions of the Act of 1956 impliedly gives the power on receipt of the amount of tax payable, as laid down under Clause 6 (2) and if the applicant feels that the amount so determined is not payable or in excess, an objection can be raised and that is why in Clause 3, after the payment of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot itself levy or determine the liability of tax. It has the only power, when the advertising agent has to recover the amount, as levied and determined by the Municipal Corporation. 45. The mode of collection by auction is not prohibited on the other hand, the provisions of the Act of 1956 impliedly and the Rules expressly permit the same. The scheme for collection of tax by auction is not unknown. The collection of 'advertisement tax' by auction is not uncommon. The Full Bench of this Court in the case of Sindhi Sahiti Multi Purpose & Transport Cooperative Society Limited, Bhopal v. State of MP & another (supra) has held that taxation and collection of tax are no doubt sovereign functions. The sovereign himself or itself cannot collect the tax. Tax has to be collected through appropriate agency. The agency can be a permanent cadre of employees. The agency can also be temporary agents on whom is conferred the authority to collect the tax, however, of course subject to the control of the sovereign or the local body. Where the employees collect the tax, they deposit the entire amount in the municipal fund and draw their pay. The same method could be followed under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... collection of 'advertisement tax' has to be made with Sections 173 and 174 of the Act of 1956. 49. 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. In view of the aforesaid, we are of the view that 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 Mayor-in-council. 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 - con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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