SELVEL MEDIA SERVICE PRIVATE LIMITED REGISTERED OFFICE Vs. MUNICIPAL CORPORATION OF CITY OF AHMEDABAD

JUDGEMENT

(1.) The parties have been heard at length at the admission stage. Considering the controversy involved, the court has found it necessary to hear the matter finally. Rule. The learned Counsel appearing for the respective respondents are directed to waive service of rule.

(2.) The petition challenges the various communications issued by respondent No. 1, Ahmedabad Municipal Corporation seeking service tax from the petitioner with incidental prayer to refund amount of Rs. 6, 17, 165 with interest at the rate of 12 per cent per annum from the date of payment till realization.

(3.) The petitioner is a company registered under the Companies Act, 1956 carrying on business as an advertising agent. Respondent No. 1 is Ahmedabad Municipal Corporation (hereinafter referred to as, "the AMC"). As a part of the statutory duties and functions imposed by virtue of provisions of the Bombay Provincial Municipal Corporation Act, 1949 (hereinafter referred to as, "the BPMC Act"), AMC is required to grant written permission for erecting, fixing, exhibiting or retaining any sky-sign or advertisement of the kind prescribed by Rules upon any land, building, wall, hoarding or structure. The case of the petitioner is that since last more than fifty years, AMC has been permitting placing of advertisements in and on private properties and AMC charges fees at the prescribed rates for hoardings in and on private properties in the city of Ahmedabad. The petitioner has been paying such fees regularly.