Hon’ble Dilip B. Bhosale, C.J.—This writ petition under Article 226 of the Constitution of India, filed by U.P. Advertisers Association and the Advertising Agencies, has sought the following reliefs:

“I. Issue a writ, order or direction in the nature of certiorari quashing Nagar Nigam (Vigyapan Par Kar Nirdharan, Pratishodh Viniyman Va Vigyapan Kar Vasooli Upvidhi, 2016 published in the official gazette U.P. on 2.4.2016 (Annexure-1 to the writ petition).

(II) Issue a writ, order or direction in the nature of mandamus commanding the respondents not to interfere in petitioner Nos. 1 to 10 carrying on the business of advertising and charge only the tax and fees etc. which the respondents were charging from the petitioners before the enforcement of Rules, 2016.

(III) Issue a writ, order or direction in the nature of mandamus commanding the respondents not to enforce the aforesaid Rules of 2016 and the amount realized by the respondents from the petitioners under new Rules, 2016 be directed to be refunded to the petitioners.”

2. Though, in the prayer clause as also in the body of the writ petition, “Rules, 2016” are referred to as Rules, which are placed on the record as Annexure-1, from a perusal thereof, it is clear and is also not in dispute that these are not Rules framed under Section 540 of the Uttar Pradesh Municipal Corporation Act, 1959 (for short, “Act, 1959”) but are Bye-laws made under Section 541 being the Kanpur Nagar Nigam Vigyapan Par Kar Nirdharan, Pratisedh, Viniyaman Va Vigyapan Kar Vasooli Upvidhi, 2016 (for short, “Bye-laws, 2016”).

3. Section 540 of the Act, 1959 empowers the State Government to make rules or model rules to carry out the purpose of the Act, whereas Section 541 confers powers on the Corporation to make bye-laws, not inconsistent with the Act and the rules, with respect to the matters mentioned therein, including in relation to fixing of fees for any licence, sanction or permission to be granted by or under the Act, regulating the charges for services rendered by any municipal authority, and prohibition and regulation of advertisements. The procedure for making rules by the State Government under Section 540 and Bye-laws by the Corporation under Section 541 is also prescribed under the provisions of the Act. We would make reference thereto a little later and at an appropriate stage.

4. It is clear that the Bye-laws, 2016, impose an advertisement tax as contemplated by Section 172 read with Section 192 of the Act, 1959. Section 172 deals with the taxes to be imposed under this Act and subject to the provisions thereof and of Article 285 of the Constitution of India. Under this provision, the Corporation is conferred with the power to impose two kinds of taxes. The first part [sub-section (1)] lays down that the Corporation “shall” impose a tax on trades, professions, transfer of property, tax on vacant land and so on. The second part [sub-section (2)] lays down that the Corporation “may” impose a tax in addition to the taxes specified in sub-section (1) for the purposes of the Act and subject to the provisions thereof, including a tax on advertisements, as contemplated by clause (h) of sub-section (2) of Section 172. Further reference to Section 172, we propose to make a little later. In this backdrop, the questions that fall for our consideration are - whether the Municipal Corporation is competent to impose an advertisement tax as contemplated by clause (h) of sub-section (2) of Section 172 of the Act, 1959 by making Bye-laws in exercise of its powers under Section 541 thereof, and whether the procedure for framing the bye-laws as contemplated under this Act has been followed. In other words, whether the procedure for making the bye-laws in exercise of the powers under Section 541 of the Act, 1959 is mandatory in nature and, if so, whether the procedure contemplated under the provisions of the Act and the relevant rules was followed and, if not, whether the Bye-laws under challenge dese