VODAFONE ESSAR SOUTH LTD Vs. STATE OF UTTARKHAND

JUDGEMENT

(1.) The issue involved in this group of petitions is whether the Nagar Parishads and the Nagar Panchayats have any authority to impose Advertisement Tax on glowsigns, signboards and hoardings which have been affixed above the shops of private individuals.

(2.) For facility, the facts of Writ Petition No. 1062 (M/S) of 2010 is being taken into consideration. The petitioner is a Company incorporated under the Indian Companies Act, 1956 and is a licensed Unified Access Service Provider in Uttarakhand Region granted by the Ministry of Communications, Government of India. In order to provide the services to its subscribers, the petitioner has laid down a network and, in order to connect with a network, a subscriber is required to have a SIM Card (Subscriber Identification Module). This SIM is an electronic chip which stores the data of the subscriber to identify the subscriber to the petitioner's network.

(3.) These SIM cards are available through shopkeepers, who are not the agents of the petitioner, but conduct the business of the petitioner company in addition to other business, on a commission basis. These shopkeepers are required to distribute the SIM cards and coupons to their prospective customers. In order to provide information to the prospective customers that it is dealing in the petitioner's product, necessary hoardings are placed over their shop. The glowsigns, signboards, etc. is only intended to inform the customer of the trade and business being carried out in that shop which the petitioner has erected/placed/affixed on the shop.