Supreme Court stays Bombay HC ruling

New Delhi March 28: The Supreme Court(SC) on Monday stayed a Bombay High Court judgment, which had upheld a legal provision empowering the Maharashtra government to impose stamp duty on contracts entered into by advertising agencies with their clients and with media companies.

"We are of the considered opinion that the matter requires to be debated, especially keeping in view the sanctity of the freedom of speech and expression and the involvement of electronic and print media and, therefore, we direct that there shall be stay of the operation of the judgment of the High Court," said a bench led by Justice Dipak Misra.

Admitting an appeal by the Indian Broadcasting Foundation, the court asked the group to keep accounts of revenue earned through advertisements and share details of revenue as well as contracts with the state government.

The High Court had affirmed the constitutionality of the amendment to the Maharashtra Stamp Act which levied stamp duty on the execution of the document pertaining to advertisements.