Home Case Index All Cases Indian Laws Indian Laws + HC Indian Laws - 2014 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 765 - HC - Indian LawsRequirement of NOC from Delhi Entertainment and Betting Tax department for the purpose of organizing events or fashion shows - Jurisdiction of Government - Power to insist to obtain No Objection Certificate - Petitioner forced to obtain "NOC" from the respondent authorities to organise events or fashion shows from time to time - Held that:- even in cases where exemption is applied for and is granted, deposit of security can be asked - Act requires and mandates self compliance by the organisers/proprietors. Draftsmen were conscious and aware that after the event, it may be difficult to collect tax dues. Proprietors who hold entertainment shows may leave Delhi or may not be traceable. Respondent authorities would lose tax revenue in case precondition of security deposit is not imposed. Thus, the Act stipulates furnishing of prior information to the Commissioner in the manner prescribed in terms of Section 8(1) and there is a requirement to furnish security before the show is held on self appraisal or as per the directions given by the Commissioner. Commissioner can pass an order prohibiting holding of such entertainment and can take reasonable steps to ensure that order of prohibition is complied with, after giving reasonable opportunity to the proprietor. An order of prohibition can be passed by the Commissioner, if any of the three conditions stipulated in the said sub-section is satisfied. One of the conditions stipulated is when proprietor has failed to deposit the security due. The show can be also prohibited if the proprietor has given any false information which is likely to result in evasion of tax or the proprietor has committed breach of any of the provisions of the Act or the Rules made thereunder - proprietor of every entertainment is required to make payment of tax in accordance with the provisions of Section 11 (b), (c) or (d) of the Act by way of pay order/bank draft into the requisite government account within such period as stipulated. There is no express requirement or stipulation in the Act or the Rules that every proprietor must obtain "NOC" from the respondent authorities. What is postulated and mandated by the Act is that every proprietor must, before the event is held, furnish the requisite information stipulated under Form 5 or 6 within the prescribed time. The applicant/proprietor at the time of submitting of Form 5 or 6 shall furnish security which may be prescribed, but in case no security is furnished or the security furnished is inadequate, the Commissioner can pass an order under Rules 30 and 31 read with Section 13(1) of the Act. If there is non-compliance of the said order, a further order prohibiting the event can be passed under Section 8(3) of the Act. There is no provision in Sections 8(1), 8 (3), 13 (1) or Rule 30 or 31 that "NOC" should be obtained for holding an event. What the relevant sections and rules postulate is that the Commissioner can pass an order directing the applicant to furnish security or enhanced security in terms of the Rules - Adjudication or assessment is required to be made under Section 15 of the Act, after organiser/applicant has filed return under Rule 14. At the initial stage, the application made and information furnished is required to be considered and thereupon security as furnished can be accepted or on basis of prima facie or tentative view/opinion, the proprietor can be asked to furnish security, or enhance the security furnished so that in case of a decision or adjudication under Section 15, the tax imposed can be collected and the respondents do not suffer due to non-payment of tax. Concept of single window clearance is not what is postulated and in fact envisaged in the policy. As per the policy, the Delhi Police licensing division requires an organiser to obtain "NOC" from the different authorities/offices. The policy and the rationale behind it has been explained. It deals with the cases where licenses from Delhi Police have to be renewed each year and hence it is recorded that it would be unduly harsh on the organiser to insist upon obtaining clearance from each agency - Delhi Police can insist that the applicant should furnish details of the application made in Form 5 and 6 under Section 8(1) or (2) before they issue clearance or ask the applicant to state whether he has received any order under Section 13(1) read with Rules 30 and 31 of the Rules. Delhi Police before issuing clearance can make inquiry from the Entertainment Tax Office to ascertain whether there has been compliance of the provisions of the Act - Decided against Appellant.
|