Hon’ble Devi Prasad Singh, J.—This bunch of writ petitions, has been preferred against the notices issued by the Nagar Nigam, Lucknow, Nagar Nigam Allahabad and Nagar Nigam Bareilly in view of tax imposed for advertisement in their respective shops in pursuance of power conferred by Rules framed for the purpose. Respective Nagar Nigam of these three districts framed Rules in pursuance of provisions contained in Section 227 read with Section 192 and 219, 540 (1) and 550 of Uttar Pradesh Municipal Corporation Act, 1959 (in short the Act) superseding all existing Rules.

2. The Rules of three Nagar Nigams are identical in nature and for the purpose of disposal of these writ petitions, the Rules framed by the Lucknow Nagar Nigam namely, the Lucknow Municipal Corporation (Assessment and collection of tax on advertisements not being advertisements published in news papers) Rules, 2000 (in short the rules,) is taken as leading one of the leading Writ Petition No. 9629 (M/B) of 2007.

3. The petitioners have challenged the vires of Rules followed by notices issued in pursuance of power conferred by Rules demanding the payment of advertisement tax. The provisions contained in Section 193 (1), 193 (2) (i) of the Act read with Section 541 (48) of the Act have also been impugned through amendment of writ petitions to declare the respective provisions as ultra vires to the Constitution and strike down the same. However, on 18.2.2014, Sri Nageshwar Rao, learned Senior Counsel appearing for the petitioners, had not pressed the relief challenging the provisions of the Act. Hence the controversy for adjudication relates to validity of the Rules (supra) and notices issued in pursuance thereof. Copy of the Rules has been filed as Annexure2 to the leading Writ Petition No. 9629 (M/B) of 2007.

4. The petitioners are companies registered under the Companies Act, 1956 and carry on the business inter alia manufacturing and marketing soft drinks, beverages being sold under the trade names Pepsi, Lahar, 7UP, Mirinda etc., within the limits of the city of Lucknow. The soft drinks are sold from the respective dealers of the petitioners company where advertisement is displayed with regard to trade and business carried upon or over their premises the sign board depicting the trade marks, logo and/or image soft drinks with or without the name of such outlets. Certain photographs have also been filed collectively as Annexure3 which show that sign boards have been placed outer walls of the shops over which the name of the shop as well as the name of beverages, snack food etc., have been indicated in bold letters.

5. It has been pleaded that beverages as well as snack food are sold by the petitioners companies to the distributors as well as retailers. It is the sole discretion of retailers to have or not have to any particular display of produce upon their retail outlet/shop. These retailers or distributors are neither owned nor controlled by the petitioners. The premises exclusively belong to the distributors/retailers.

6. The Rules have been notified by the Government in pursuance of power conferred by clause (3) of Article 348 of the Constitution of India on 3.3.2000. Under Rule 3, it has been provided that no person shall display, paste or exhibit, write or draw any advertisement without obtaining prior permission from Mukhya Nagar Adhikari. Application may be moved under Rule 4 in the prescribed format and under Rule 5, the application for permission referred to in rule-4, may be rejected on certain grounds. Under Rule 7, it has been provided that tax shall be paid for the whole year in three instalments. Rule 9 deals with the advertisement over the shop and Rule 10 further provides that any advertisement done without prior permission may be wiped off by the Nagar Nigam. Rule 12 imposes certain restriction over the advertisement whereas Rule 13 empowers Mukhya Nagar Adhikari to remove any advertisement. For convenience, Rule, 3, 4, 5, 6, 7, 8, 9, 10