Summary: The Bombay High Court supported the Pune Municipal Corporation's decision to raise the fees for sky-signs and billboards to ₹222 per square foot each year, starting from April 1, 2013. The court rejected complaints from advertisers, confirming the fee as a rule-based charge and not a tax.
The Pune Municipal Corporation (PMC) decided to increase the fees for sky-signs and billboards to ₹222 per square foot per year. This decision was based on bids received during a tender process in 2011, with the highest bid being ₹222. However, Spectrum Advertising contested this increase, claiming it was too high and effectively a tax.
Spectrum Advertising's View: - Spectrum Advertising argued that the fee was basically a tax since it was used to generate money without providing a direct service in return. - They said the fee increase was applied retroactively and didn't have proper legal approval. - They referenced the removal of a specific law about advertisement taxes as a reason the fee shouldn't be charged.
PMC's Defense: - The PMC argued that the fee was meant to cover the costs of managing and controlling advertisements. - They stated that the fee wasn't a tax and was allowed under the Maharashtra Municipal Corporation Act (MMC Act). - The PMC mentioned the need for the fee to handle modern advertising issues, including safety and environmental concerns.
Regulatory Fee, Not a Tax: - The court decided that the fee was a rule-based charge, not a tax, as it was meant to cover the costs of managing advertising structures. - It stressed that the fee was needed for the safety and management of sky-signs, which have changed a lot with new technology.
Retroactive Approval: - The court agreed that the PMC's decision to apply the fee retroactively was valid. The General Body's approval of the fee increase, even after it was already in place, was within its rights under the MMC Act.
Constitutional Compliance: - The court rejected the argument about the removal of the specific law, saying the rule-based nature of the fee didn't go against constitutional rules.
The decision highlights the court's understanding of the changing nature of city advertising and the need for rules to keep up. The ruling allows the PMC to keep collecting the higher fee, making sure the city's advertising is managed well and safely.
This case shows the balance between city authority and business interests, emphasizing the importance of rule-based fees in maintaining city infrastructure and public safety.
