Power To Levy GST And Power To Levy Advertisement Tax Are Independent Of Each Other – Karnataka High Court

The Hon’ble High Court of Karnataka vide its order dated 21st April 2022 in the matter of Hubballi Dharwad Advertisers Association (R) & others Vs.  State of Karnataka & others in Writ Petition No. – 104172 of 2021 (LB – Tax) held that the power to levy GST and power to levy Advertisement Tax is independent of each other. There is no conflict between the power to levy GST under GST Act and power of Municipal Corporation to levy advertisement fee/advertisement tax under Section 134 of the Karnataka Municipal Corporations Act.

The petitioners preferred the writ petition before the Hon’ble High Court praying for setting aside the impugned Demand Notice dated 13.06.2018 issued by the respondents.  Further, directions were sought to the respondents not to meddle with the Advertisement Displays and Hoardings of the petitioner.

Facts:

  • The petitioners are in the business of advertisement through hoardings licensed by Hubballi Dharwad Mahanagar Palike (one of the respondents), and are registered dealers under Section 22 of the Karnataka Value Added Tax Act.
  • The petitioners are duly discharging their liability of advertisement tax despite which a notice dated 01.12.2014 (Annexure-A) asking petitioners to deposit advertisement tax regarding hoardings used by them.

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