The Patna Municipal Corporation vs M/S Tribro Ad Bureau

The Supreme Court upheld the High Court's decision that the Patna Municipal Corporation's imposition of a tax on advertisements was unconstitutional as it violated Article 265 of the Constitution of India, which mandates that no tax shall be levied or collected except by authority of law. The Court ruled that the Corporation lacked legislative sanction to impose such a tax, thus ordering the refund of all amounts collected under this tax and stating that no penalties could be imposed for non-payment. The judgment emphasized the necessity of legislative authority for tax imposition, reinforcing the principle of legality in taxation.