By Akash Rathi Advocate, Lex Maven
The Hon’ble Supreme court in the matter of M/S Harsh Automobiles Private Limited VERSUS Indore Municipal Corporation on October 09, 2023 held that
QUESTIONS BEFORE COURT
In the teeth of Section 132(6)(1) of the Municipal Corporation Act aoresaid statutory provisions, it requires to be examined as to whether the display boards or sign boards or name boards as displayed by the appellants would partake the character of “advertisement” so as to attract Section 132 of the Act and thereby the demand is to be sustained? The incidental question which may also arise would be whether
all modes of display would tantamount to advertisement? or such display would only be information to the potential customer so as to make aware about the type of product, goods or services dealt with by
the business establishment that is available in the premises of such business establishment?
DISCUSSION
To answer this, it would be apt and appropriate to note the meaning of the expression “advertisement” assigned under various dictionaries. They read as under:
(a) “BLACK’S LAW DICTIONARY, 8TH EDITION
Advertising: 1. The action of drawing the public’s attention to something to promote its sale. 2. The business of producing and circulating advertisements
(b) LAW AND COMMERCIAL DICTIONARY
Advertisement: Notice given in a manner designed to attract public attention. Edwards v. Lubbock Country, Tex Civ. App., 33 S.W.2d 482. Information communicated to the public, or to an individual concerned, as by handbills, newspaper, television, bill-boards, radio. First Nat.
Corporation v. Perrine, 99 Mont 454: 43 P.2d 1073
(c) THE NEW ENCYCLOPAEDIA BRITTANICA VOLUME-I
Advertising, the techniques used to bring products, services, opinions, or causes to public notice for the purpose of persuading the public to respond in a certain way toward what is advertised. Most advertising involves promoting a good that is for sale, but similar methods are used to encourage people to drive safely, to support various charities, or to vote for political candidates, among many other examples.
(d) COLLINS DICTIONARY OF THE ENGLISH LANGUAGE
Advertisement any public notice, as a printed display in a newspaper, short film on television, announcement on radio, etc., designed to sell goods, publicize an event, etc. Advertising 1) the action or practice of drawing public attention to goods, services, events etc., as by the distribution of printed notices, broadcasting, etc. 2) the business that specializes in creating such publicity, 3) advertisements
collectively; publicity.
(e) THE CHAMBERS DICTIONARY
Advertisement – the act of advertising; a public notice with the purpose of informing and/or changing public attitudes and behavior; a short performance recorded for radio, T.V. etc. to advertise goods or services; news.
Supreme Court in the case of ICICI Bank and Another Vs. Municipal Corporation of Greater Bombay (2005) 6 SCC 404 has held that advertisement should have some commercial exposition or the
soliciting customers to the product or service prominently shown in the advertisement. Primarily, it should have a commercial purpose and should be indicative of business activity of the displayer with a view to attract the attention of people to its business.
In the present case dealers of Tata Motors and Hyundai Vehicles appellants have displayed their name board of respective business establishment which is also depicting the nature of the respective vehicles which are being sold and it would be inseparable part of the appellants’ business establishment.
Spreme Court holds that by mere mentioning the name of the product in which the business establishment is being run would not partake the character of the advertisement until and unless by such display customers are solicited. In the absence of the display of the name board or sign board either by a business establishment or any other establishment including public offices and professionals or schools or colleges etc. it would drive the potential customer to such a situation where it would be neigh impossible to identify the business establishment from which the potential customer proposes to buy. However, if the sign boards so displayed would in any manner promote a particular product or goods or services or in other words it would attract customers to purchase a particular brand of product or goods or services and such display provides information about the product/ services and solicit the customers, it may amount to advertisement while the latter would only be an information to the public. The statutory provisions noted hereinabove does not empower the Municipal Corporation or its agency to demand tax for display of information through name boards or display boards. It would emerge from the statutory provisions noted hereinabove that the legislative intent was never to impose tax liability on sign boards but only on advertisement. Prima facie, the sign boards are display boards displayed by the appellants’ companies in the instant appeals would indicate that they have displayed on their respective premises the general information to the public about the products being dealt with by them and it would not reflect any soliciting of customers or induce the general public to buy the products dealt by the appellantsand displayed on the board. Even in such circumstances, if it is held that it amounts to advertisement, such levy would be without authority of law and would find foul of Article 19(1)(a), 19(1)(g) and Article 265 of the Constitution of India.