Home Case Index All Cases Service Tax Service Tax + HC Service Tax - 2013 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (3) TMI 155 - HC - Service TaxConstitutional validity of Entertainment tax on MSO at the rate of 20 per cent of the turnover - Their main contention is that imposition of entertainment tax on them is beyond the legislative competence of the State Government as they are already subjected to service tax for their services under section 65(105)(zs) of the Finance Act, 1994. - According to them, entertainment tax is also contrary to the settled law and violative of Articles 14, 19(1)(g), 246 and 265 of the Constitution of India. - held that:- In State of West Bengal v. Purvi Communication Pvt. Ltd. (2005 (3) TMI 438 - SUPREME COURT OF INDIA) the Supreme Court has held that the State Government has legislative competence to levy entertainment tax through cable television network on MSOs as they have direct and close nexus with entertainment provided to viewers and they are the providers of entertainment. The Supreme Court has also held that levy of such entertainment tax on MSOs is neither discriminatory nor violative of Article 19(1)(g) of the Constitution. This decision was later followed by the Supreme Court in Indusind Media & Commun. Ltd. v. Mamlatdar (Supra) which was a matter from the State of Gujarat and an entertainment tax was levied on the MSOs. In this case, the Supreme Court has held that since such MSOs are connected to an organization of entertainment, they fall within the meaning of “proprietor” and the issue that MSOs are liable to pay entertainment tax is not longer res integra.
|