The Supreme Court on Monday said it was not convinced that the contentious issue of levy of stamp duty by the Maharashtra government on the advertisements placed on the newspapers, TV channels and Radio is of national importance and the petitioners should approach the Bombay High Court for redressal of the grievances.
A bench of Chief Justice K G Balakrishnan and Justice R V Raveendran said, “Go to the Bombay High Court. This is not an all India issue.”
The Advertising Agencies Association of India (AAAI), Sam Balsara, the chairman and MD of Madison Communication Pvt Ltd, Indian Newspaper Society (INS) and its deputy president Paresh Nath had filed a petition before the apex court seeking direction for declaring The Bombay Stamp (Amendment) Act, 2005 as unconstitutional and illegal.
Senior Advocate Harish Salve appearing for the petitioners submitted that “The said amendment seeks to levy the stamp duty on all agreements relating to any advertisements on mass media irrespective of where the publication or broadcast takes place.” He said the imposition of 0.25 per cent stamp duty on the contracts for advertisements in mass media will affect the cost of advertisements. Reduction in advertisement will affect the earnings of mass media, which would either run on loss or raise its price..
On August 8, 2005, the Maharashtra government had enacted the Bombay Stamp (Amendment) Act, 2005 to levy 0.25 per cent stamp duty on the agreements or its records or memorandum of agreement relating to any advertisement on mass media, made for promotion of any product or programme or event.