Summary: The High Court of Bombay has decided that the Pune Municipal Corporation (PMC) can legally charge fees for putting up large signs and billboards. The court rejected complaints from advertising companies, like M/s. Pioneer Publicity Corporation Pvt. Ltd., who said the fees were like taxes without proper approval.
M/s. Pioneer Publicity Corporation Pvt. Ltd.'s Argument: - Advertisers said the fees were basically taxes pretending to be license fees. - They argued that after the Goods and Services Tax (GST) started, the PMC shouldn't charge these fees. - They mentioned that a change in the law removed the state's power to charge taxes on advertisements.
Regulatory Fee, Not a Tax: - The court explained that the fees are for keeping track of and managing large signs and billboards. - It pointed out that the difference between a tax and a fee is why it's charged; fees are for management, not making money.
Legislative Authority: - The court said that the Maharashtra Municipal Corporation Act allows these fees. - It mentioned that the state can make rules about fees for certain matters, supporting the PMC's position.
Approval of Past Fees: - The court agreed with the PMC's decision to charge the fees starting from April 1, 2013. - It said that the municipal body was allowed to charge these fees for past years.
Changing Times, Changing Signs: - The judgment noted that outdoor advertising has changed from simple boards to digital displays. - It said there's a need for rules to keep people safe and make the city look nice.
Municipal Autonomy: - The court emphasized that municipal bodies need financial independence to do their jobs well.
The court's decision supports the PMC's right to manage and charge for outdoor advertising, seeing it as important for managing the city. Advertisers need to follow these rules to make sure their work fits with the city's goals for public interest.
