TMI Blog2017 (10) TMI 1642X X X X Extracts X X X X X X X X Extracts X X X X ..... r '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. As the controversy involved in the present case stands concluded by the judgment delivered by the Division Bench, this Court does not find any ground or reason to take a different view of the matter and accordingly the present Writ Petition stands dismissed. - D.B.: HON'BLE MR. S. C. SHARMA AND HON'BLE MR. ALOK VERMA, JJ ORDER PER : S. C. SHARMA, J :- The petitioner before this Court has filed this present writ petition being aggrieved by the order dated 19/3/2015 passed by the respondent Indore Municipal Corporation, Indore by which the petitioner Company has been directed to pay advertisement tax in respect of glow signs and neon signs board affixed in or outside the premises of dealers, distributors and retailers and to pay the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5) 11 SCC 45 Chander Kanta Vs. Rajinder (2008) 5 SCC 117 Consumer Online Foundation Vs. U.O.I. (2011) 5 SCC 360 JIK Industries Vs. Amarlal (2012) 3 SCC 255 CIT Vs. Vatika Township (2015) 1 SCC 1 CCE Customs Vs. Larsen Toubro Ltd (2016) 1 SCC 170 Himmatlal Harilal Vs. State of M.P. AIR 1954 SC 403 Collector of Customs Vs. Ramchand AIR 1961 SC 1506 Ratiloku Shetty Vs. Municipal Corporation, Mumbai AIR 2001 Bom. 380 Calcutta Soft Drinks Pvt. Ltd., Vs. Calcutta Municipal Corporation AIR 2007 Cal. 136 Aradhana Drinks Beverages Pvt. Ltd., Vs. AIR 2012 P H 20 State of Punjab Krishna Pictures Vs. Administration I.M.C. 1980 JLJ 530 Hutchison Vs. Bruhat Bangalore Mahanagar Palika ILR 2009 Karnataka 4255 Learned counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Madhya Pradesh others), (19) Writ Petition No.8170/2012 (Total Oil India Private Limited v. The State of Madhya Pradesh others), (20) Contempt Case No.463/2014 (Idea Cellular Limited v. Mr. Rakesh Singh another), (21) Writ Petition No.4770/2014 (Signature Laminates Private Limited v. The State of Madhya Pradesh others), (22) Writ Petition No.6099/2014 (Nokia India Sales Private Limited v. The State of Madhya Pradesh others) and (23) Writ Petition No.6344/2014 (Value Industries Limited v. The State of Madhya Pradesh others). 2. In all these petitions under Article 226 of the Constitution of India, the challenge is, essentially, to the imposition of 'advertisement tax' other than the advertisements published in newspapers under Section 132 (6) (l) of the Madhya Pradesh Municipal Corporation Act, 1956 (in short, the Act of 1956 ) by the Municipal Corporation, Indore and its agents / contractors and also prayed for issuance of writ of prohibition, restraining respondents and its agents from threatening the petitioners for levy, collection and recovery of 'advertisement tax' and from removing the hoardings / sinage and other advertisements of the retai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipal Corporation (Advertisement) Bye Laws, 1976 (in short, the Bye Laws of 1976 ) in accordance with the powers vested on it under Sections 427 and 442 of the Act of 1956 and the said Bye Laws of 1976 were approved by respondent No.1 under Section 430 (of the Act of 1956) and were published in the official gazette on 18.08.1978, as required under Sections 429 and 431 of the Act of 1956. 7. As per the Bye Laws of 1976, respondent No.2 is empowered to levy and collect 'advertisement tax' under Clauses 4, 5 6 of the Bye Laws of 1976, which reads, as under: - 4. Collection of tax. - The tax shall be collected in advance at the office of the Municipal Corporation, Indore after the Municipal Commissioner has approved the proposed advertisement and granted permission, in accordance with these bye laws. 5. Permission for advertisements. - No advertisement shall be exhibited, erected, fixed or retained or displayed except with the permission of the Municipal Commissioner. 6. Permission how granted. - (1) Every person desiring to exhibit, erect, fix, retain or display advertisement shall apply in Form 'A' to the Municipal Commissioner not less tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lic convenience nor in purely residential localities and at heavy traffic points and important road junctions except in the latter case to the extent permitted at approved sites. Once a regulated hoardings has been allowed at any of the approved sites, all subsequent advertisers will be required to conform thereto in the matter of size, position, alignment and the like of their hoardings. (c) (i) The permissible sizes of hoardings for any one advertisement shall be as under: Large size : To be erected in horizontal positions only; Small size : To be erected either horizontally or vertically. (ii) As a general rule no indiscriminate mixture of hoarding of different size will be allowed at any one place. (d) The lower base or the bottom of a hoarding at an approved size shall be at a height of not less than 2.40 meters from the surface of the ground below it and it shall be in correct alignment with the other approved hoardings, if any, previously allowed to be put at the site. (e) The supports of all such hoardings shall be of steel or other metal or of sound quality of timber about 10 cm x 10 cm, thickness firmly in-bedded in the ground and suita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the date of such order. 12. Penalty. - Whoever contravene any provisions of these byelaws shall be punishable with fine which may extend to one hundred rupees and in the case of a continuing breach with fine which may extend to ten rupees for each day during which the breach continues after conviction for the first breach. 8. Sections 133, 134, 173, 174, 175, 184, 189-A, 427, 430 and 431 of the Act of 1956 reads, as under: - 133. Imposition of Taxes and Fees.- ( 1) The Corporation may, by a resolution, at the time to final adoption of the budget estimates for the next financial year, subject to the provisions of this Act and subject to such limitations and conditions, as may be prescribed by the State Government in this behalf- (a) impose any of the taxes or fees specified in this Act; or (b) increase the rates of taxes or fees already imposed. (2) The resolution as referred to in sub-section (1) shall contain- (a) in case of imposition of any tax or fees, the provisions under which such tax or fee is being imposed, class of persons or description of property to be taxed, the amount or rate of tax or fee being imposed, system of as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 of such notice- (a) Pay the sum demanded in the notice; or (b) show cause to the satisfaction of the Commissioner why he should not pay the same; or (c) prefer an appeal in accordance with the provisions of section 184 against the demand; such sun with all costs of recovery may be recovered under a warrant in the form prescribed byelaws signed by the Commissioner -. (i) by distress and sale of the movable property belonging to such person; o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, prescribed by the State Government in this behalf. 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:- (2) Time and mode of collection of taxes, etc. - The regulation of the time and mode of collection of any tax which may be imposed under Section 132 or which is charged and levied under Section 135. (3) Assessment, collection, remission, refund and recovery of taxes, cesses, etc. - (a) the date before which, and rates at which municipal taxes to be levied shall be determined; (b) the assessment, collection, composition, remission, refund and recovery of taxes and cesses and the exemption from such taxes and cesses, and the prevention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gust, 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 collection. This follows from Article 265 of the Constitution which directs that no tax shall be levied or collected except by authority of law. The words levy and collection in this Article are used in a comprehensive sense to cover all steps beginning from imposition and ending with recovery. The Constitution, however, does not make it obligatory that the procedural provisions for assessment must be detailed which must, of necessity, depend upon the nature of the tax imposed by the statute. The assessment of tax on a person or property is a proceeding of quasi-judicial nature and if the machinery provided by the statute for assessment and collection is purely administrative, the imposition of the tax may be held to be invalid as unreasonable restriction of the fundamental rights guaranteed under Article 19 (1) (f) and (g) of the Constitution. But a provision to make an assessment in accordance with quasi-judicial procedure need not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 of such notice- (a) Pay the sum demanded in the notice; or (b) show cause to the satisfaction of the Commissioner why he should not pay the same; or (c) prefer an appeal in accordance with the provisions of section 184 against the demand; such sun with all costs of recovery may be recovered under a warrant in the form prescribed byelaws signed by the Commissioner. A reading of Section 173 will show that the Commissioner can cause a bill on account of any tax imposed which has become due to be presented to the person liable for the payment thereof. The bill has to show the period for which and the thing in respect of which the same is claimed. The bill has also to specify the time within which an objection may be preferred. On receipt of such a bill the person concerned may either pay the same or raise an objection to the payment before the Commissioner. If the bill i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imilarly, 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. These decisions support our conclusion that sections 173 and 174 impliedly provide for assessment in a quasi-judicial manner in cases where there are no separate bye-laws for assessment of a tax. We are, therefore, unable to accept the argument that the tax was inoperative till 18th August, 1978 for want of any machinery for its assessment or collection. 11. On 30th May, 1994, Section 189-A was inserted in the Act of 1956, which permits recovery of tax by public auction to a private agency. On 28.10.2002, rates of 'advertisement tax' were altered. On 17.03.2005, Mayor-in-Council passed a resolution for inviting tenders. On 20.04.2005, Corporation passed a resolution to invite tenders for recovery of 'advertisement tax'. 12. On 25.07.2011, tender notice dated 23.07.2011 was published in Dainik Bhaskar newspaper. Tender of respondent No.3 was accepted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 expression system of assessment means the entire procedure for assessment and collection of tax, and that as the order of the Administrator do not contain any procedure for assessment or collector of tax, there was non-compliance of the mandatory requirement of Section 133 of the Act of 1956 and the imposition of 'advertisement tax' was invalid. 18. The contention of the learned Senior Counsel for the petitioners is that Section 189-A of the Act of 1956 by itself cannot authorize recovery of 'advertisement tax' by authorizing a third party through auction, because the Byelaws of 1978 do not contain any power / authorization upon respondent No.2 to grant by way of contract / auction its powers to recover 'advertisement tax'. Under the provisions of Section 134 of the Act of 1956, taxes can be recovered either by modes prescribed unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xx 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 be subject to sanction of Government.- (1) No byelaw made by the Corporation under this Act shall have any validity until it is confirmed by the Government. (2) Before sanctioning any such byelaw the Government may modify it. (3)The Government my cancel its confirmation of any such byelaw and thereupon the byelaws shall cease to have effect. Thus, when the byelaws are framed, a proper check and control is exercised by State Government. Unless the byelaws can be challenged on any valid reasons, the right to collect the tax by holding auction cannot be assailed. The scheme of Act (Section 88 Thirdly) contemplates appropriation of tax for carrying out the purposes of the Act as also for expenses and costs in discharge of duty. The collection of a tax is one of the functions. The provisions are to be construed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 fees (1) The council, may by public auction or private contract, lease the levy of tolls, market dues and fees which may be imposed under this Act: Provided that the lease shall give security for the due fulfillment of the conditions of the lease. (2) When leave has been given under sub-section (1) the lessee and any person employed by him to collect any tolls, market dues and fees shall, subject to the conditions of the lease, have the power referred to in sub-section (8) and (5) of Section 157. Rule 12 : M.P. Municipal Terminal Tax on Passengers (Regulation of Assessment and Collection) Rules, 1988 The Council may with the previous sanction of the State Government, by public auction of private contract, lease the assessment and collection of the said tax: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egislature. 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 uphold the mode of collection challenged by the petitions. 20. The petitioners have also placed reliance on the Apex Court decision in the case of Indore Municipal Corporation v. Gujarat Cooperative Housing Society Limited reported in AIR 1992 SC 1506, wherein the Apex Court in paragraph 24 has held, as under: - 24. The bye-laws are framed under Section 427 of the Act and Section 431 provides that all bye-laws shall be published in the Gazette. The effect of these provisions is that the bye-laws become part of the Act. Thus the Corporation while providing the system of assessment for various taxes can propose a basis but after the bye-laws provided the system of assessment, the Corporation has to abide by that system of assessment. It is very clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 enhanced fee not provided in any rule or bye-laws cannot be recovered. Even Article 265 of the Constitution of India provides that no tax shall be levied or collected except by authority of law. Article 265 provides that not only levy but also collection of tax must be under the authority of some law. Any recovery by invalid law or rule is liable to be interfered by the Court. 22. The contention of the learned Senior Counsel for the petitioners that that there is no provision in the Byelaws to award contract for recovery of 'advertisement tax' to a private party, and thus, the agreement entered into between respondents No.2 and 3 is void ab-initio, being without authority of law. 23. It has also been submitted by the learned Senior ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xported 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 30 days from the date of receipt of such notice. 6. The Municipal Commissioner/Chief Municipal Officer, as the case may be or any Municipal Officer/employee authorised by them, with the prior approval of Commissioner in case of Municipal Corporation and Chief Municipal Officer and in case of Municipality and Nagar Panchayat, may enter in the shop concerned, establishment or Mandi, as the case may be, to enquire into the information given in the return and may inspect the record as may be necessary. 7. If the return is not submitted or the amount of terminal tax is not deposited in the Municipal Treasury within the period specified in Rule 4, a surcharge at the rate of five per cent per month shall be payable and in case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uses 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 the Authorities of the Municipal Council to recover arrears and such recovery can be made through the Magistrate having jurisdiction within the limits of the Municipality and such Magistrate may order recovery by distress and sale of any movable property or attachment and sale of immovable property belonging to such person within the limits of his jurisdiction. Thus power to recover arrears of demand by coercive method vests with the Magistrate under Section 165 of the Act and it cannot be exercised by contractor. Section 166 further provides extent of special provisions for recovery of taxes. It provides that in the event of the notification issued by the State Government, it may suspend operation of Sections 168 to 170 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er'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, thus confirms the factum of illegal coercive action by the private respondent No.3. 25. It is also pointed out that the Municipal Corporation has only right to take coercive action for recovery of dues of 'advertisement tax', as prescribed under the Act of 1956 and the Byelaws of 1978 framed thereunder. Respondent No.3 has no power or authority to take any coercive action. 26. The question whether glow-sign board is an advertisement or not, and who has erected the same has to be determined before any recovery can be made. In the case of ICICI Bank v. Municipal Corporation of Greater Noida reported in (2005) 6 SCC 404 (SC), it was held: - In the present case no exercise was undertaken by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isplayed 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 stating therein that the 'advertisement tax' cannot be subjected to tax in the hands of the petitioners, because these have not exhibited / erected / fixed by the petitioners at its premises. Respondent No.3 without verifying the aforesaid only on the basis of ex parte survey made by respondent No.3 for assessment of 'advertisement tax', whereas no advertisement has been erected or installed by the petitioners at its premises. Merely because, a third person uses the name of the petitioners at its premises that would not make the petitioners liable to make payment of the alleged tax. Under the byelaws, the charge of 'advertisement tax' is on the person, who erects / installs / fixes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 October, 1989 is further evident from paragraph 90 of the judgment. The said paragraph shows that as on the date of the judgment for the period subsequent to 1st March, 1986 the demand of the Central Excise Department on the alcohol manufactured was over Rs. 4 Crores. The Court referred to its orders dated 1st October, 1986 and 16th October, 1986 whereby the State Government was permitted to collect the levy on alcohol manufactured in the company's distilleries. With respect to the said amount of Rs. 4 Crores, it was observed that It is, therefore, necessary to declare that in future no further realisation will be made in respect of this by the State Government from the petitioners. The imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 that in the light of aforesaid agreement and work order my client started its tax collection process after making due survey on different private and commercial institutions, shops, malls and other premises on 21st December, 2011. In respect to the aforesaid process my client sent its humble demand letter along with bill and other supported documents on 14.01.2012 and took signed and sealed receipt fro you whereby it requested for your kind support and for payment of your dues of advertising tax incurred due to flex / glow shine / neon shine board and all other modes of advertisement affixed at your premises. Copy of aforesaid demand letter, bill and receipt dated 16.01.2012 given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 thereafter, an agreement was executed on 24.08.2011. He submitted that as per Section 132 (6) (l) of the Act of 1956, the petitioner is liable to be taxed, therefore, no case for interference is made out in the matter. He submitted that no power has been given to respondent No.3 private contractor to recover the tax by taking coercive action against the petitioner. He has drawn our attention to the decision of Gwalior Bench of this Court in the case of Gwalior Advertisers Association, Gwalior others v. The State of Madhya Pradesh others, Writ Petition No.767/1994 decided on 07.08.1996 and submitted that learned Single Judge without considering the provisions of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, no employee / officer of Indore Municipal Corporation was present. 40. It is evident from the aforesaid provisions and the decisions that the power which have been delegated under Section 189-A is for recovery of the amount. That power does not include the levy and the assessment of the tax. In this case, the assessment has to be made by the Corporation. It is for the Corporation to issue notice to the petitioners regarding the provisional levy in respect of the hoardings either installed by them or through the advertising agency and the holders are required to raise objections if they want to lay the challenge to the demand mode. Whereupon, after giving o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipt 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 tax, the application requires to be considered and the Municipal Corporation is required to pass an order in Form 'B' permitting exhibition or retention of the advertisement. Passing of the order, after the consideration, impliedly means that if any objection is raised, the same has got to be considered. Thus, it cannot be said that no opportunity is accorded to the applicant to raise an objection. Intimation of the amount of tax for the intended advertisement and consideration of the application impliedly amounts to granting an opportunity, which is also, in accordance to the principles of natural justice. Thus, no fault can be found in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 scheme of auction. The successful bidder could be required to deposit the entire collection in the municipal fund and he may be separately paid for his exertion. Under the bye-laws, instead of depositing the entire amount and taking back the remuneration, the net amount is required to be deposited. Where the collection agency has to be remunerated, remuneration may be fixed on any reasonable basis including percentage or a lump sum. At the same time, the local body may secure guarantee of minimum collection. All these factors are taken into consideration in devising the mode of collection. The local body is assured of minimum collection which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esolution 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 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 contractor shall recover the amount as per the scheme framed under the Byelaws. The contractor cannot take any coercive action for recovering the amount of 'advertisement tax'. If any one fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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