Supreme Court: 'Royalty' Imposed By Municipal Corporation For Putting Hoardings Or Advertisements Cannot Be Termed 'Tax'
The Business Guardian|October 18, 2024
The Supreme Court in the case The Patna Municipal Corporation And Ors. versus M/S Tribro Ad Bureau And Ors observed that the 'royalty' which is being imposed by the Municipal Corporation on the advertising companies for putting up hoardings or advertisements could not be termed as 'tax'.

The bench comprising of Justice Vikram Nath and Justice Ahsanuddin Amanullah was hearing the present matter.

The bench in the case set aside the decision of Patna High Court Division bench wherein the court directed the Patna Municipal Corporation to refund the 'royalty' which is being collected from the advertising companies on the note that the Corporation has no legal competence to levy and collect 'royalty' as stated under Article 226 of the Constitution of India. It has also been observed by the said court that the imposition of 'royalty' by the Municipal Corporation could not be called as 'compulsory exaction' to term it as tax.

The court also referred to the recent nine judge bench decision in the case Mineral Area Development Authority v Steel Authority of India to hold that royalty is not tax.

この記事は The Business Guardian の October 18, 2024 版に掲載されています。

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この記事は The Business Guardian の October 18, 2024 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

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