Court stops MCD from extracting higher tax from jewellers

A city court has restrained Municipal Corporation of Delhi (MCD) from levying a hefty tax on a local jewellery firm for putting up a giant signage, albeit in its own premises, in the absence of any taxation rule or guidelines for such cases.

“Admittedly, MCD does not have any specific order for levying tax for self signage nor any rules have been prescribed,” Additional Senior Civil Judge (ASCJ) Gautam Manan said while refusing MCD permission to levy a tax at the rate of Rs 115 per square meter per month on P P Jewellers for putting up its signage of 74.20 square meters in its premises at Karol Bagh.

It asked MCD to allow the jewellery outlet to put up its signage for a year after paying a fee of Rs 15,000 at a rate of Rs 163 per square meter per year, an offer made by P P Jewellers to the MCD.

P P Jewellers Pvt Ltd had filed an application seeking directions to MCD to permit them to put up self signages on their premises at the fee as mentioned in their policy or the Delhi Municipal Corporation (DMC) Act.

Advocate Ajay Garg, appearing for the firm, submitted before the court that under provisions of section 142 of the DMC Act, one can be permitted to put a signage on his building and the civic body cannot charge tax if the size of the signage is less than 2.5 square meters.

He said if the size of signage is beyond 2.5 square metre, then MCD can charge extra amount as per the outdoor advertisement policy 2007 as approved by the Supreme Court.