A bench headed by justice Sanjay Kishan Kaul and justice Indermeet Kaur has sought
the response of South Delhi Municipal Corporation by April 15, 2013.
The bench issued a notice to SDMC after finding prima-facie merit in the association's lawyer KC Mittal's argument that the tax was illegal and the Delhi Municipal Corporation Act 1957, does not delegate any power to SDMC to levy a tax not provided in the act.
The DMC Act does not delegate any power to SDMC to levy tax not provided in the Act. Property tax is applicable only to immovable property and it cannot be charged on property of any other nature already paying advertisement tax.
“The outdoor advertisers association is already paying advertisement tax and an illegal tax in this form is also being imposed on them. The DMC Act nowhere provides for imposition of tax on moveable property. The bye laws are ultra vires of the constitution too,” Mittal argued.