MAM
MCGM to Bombay high court: Can’t waive licence fee for Mumbai’s OOH owners
MUMBAI: On 19 June, in an unexpected turn of events, the municipal corporation of greater Mumbai (MCGM) refused to waive off the licence fees even if the hoardings in Mumbai are advertising civic messages.
The bench dealt with a number of petitions filed by advertising agencies, holding licences for hoarding sites in Mumbai. The hoarding owners were seeking waiving of the licence fees. The licence holders claimed that they are not using their hoarding sites since March due to the outbreak of Covid2019 and they have been only advertising civic messages.
"There is no provision in any statute, rule, policy or license condition that contemplates that if the licence holders are unable to display the advertisement for any reason whatsoever, they will be entitled to waiver of licence fees. They have failed to make out any constitutional or legal right for such waiver of the license fees," the MCGM said in an affidavit.
"Our guidelines specifically contemplate that it is mandatory on part of the agency to display a civic message as and when directed by us for a period of 15 days in a year for which no fees will be payable," the affidavit read.
The civic body mentioned that it had sent notices to a number of agencies to put messages to spread awareness about the disease in March.
Clarifying in the affidavit, MCGM said, “Hoardings were required to be displayed for a period of 10 days only and there was no need to give any fresh notice or letter for removal of the same. The agencies are intentionally misreading our notice. The notice does not contemplate that any further instructions would be issued for removing the hoardings.”
The civic body also revealed that it had waived licence fees for the month of April of Rs 7.49 crore and that the civic body itself went through a loss of nearly Rs 70 lakh.
"The commercial arrangements between the private advertisers and the licencees are not within our scope and ambit. We are in no way responsible for any such breakdown in the commercial relationship of the licencees and the same cannot be a ground for a grant of a waiver of licence fees without any legal or the statutory basis for the same," the MCGM said while urging the bench to dismiss the plea.
The eight Mumbai OOH owners who filed the petition in the Bombay HC for waiver of licence fees are — Creation Publicity Pvt Ltd, Bright Advertising Pvt Ltd, Orion Advertisers, Anurag Sites, Em Vee Advertising Company, Pingle Outdoor, Yoag Advertisers and Pioneer Publicity Corporation Ltd.
The firms have been asked to submit replies in writing, by 26 June.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
