In Brief
Two automotive dealers challenged advertisement tax demands by the Indore Municipal Corporation for displaying name boards showing their trade names and products at their business premises. The Supreme Court held that mere display of a business establishment's trade name and product information on its premises does not constitute "advertisement" liable to taxation unless it actively solicits customers or promotes purchase of a particular product. Such boards serve only an informational purpose—identifying the business—similar to name boards of doctors, schools, or government offices. The Court found that imposing tax on these boards would violate Articles 19(1)(a) and 19(1)(g) of the Constitution. The Court remitted the matter to the Municipal Commissioner to re-examine the objections with the correct legal standard distinguishing advertisement from business identification.
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