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2020 (12) TMI 691 - HC - VAT and Sales TaxTaxability under VAT - online booking charges charged by a Cinema Hall Owner - Whether the “online booking charges” charged by a Cinema Hall Owner besides the “cost of ticket” for entry into the cinema hall and enjoy the entertainment in the form of a movie, is a part of taxable receipt by the Cinema Owner for the purposes of the Tamil Nadu Entertainment Tax Act, 1939”? - appellant paid service tax on the same - HELD THAT:- Similar issue decided in the case of PVR LTD., (FORMERLY KNOWN AS SPI CINEMAS PVT. LTD.) NEW DELHI VERSUS COMMERCIAL TAX OFFICER [2020 (10) TMI 778 - MADRAS HIGH COURT] where it was held that levy of Service Tax and Entertainment Tax on online ticket booking charges are mutually exclusive. Assessee has paid Service Tax under Finance Act 1994 on such 'online booking charge' for the period from 01.07.2012. The Assessing Authority has also dealt with the definition of Section 3(7)(c) of the Act and has emphasized the words “any payment for any purpose in addition to the payment for admission to the entertainment”. The said reassessment order was passed exercising the powers under Section 7(2) of the Act 1939, and the Assessing Authority not only imposed tax at the rate of 30% on the online booking charges to the extent of ₹ 41,96,277/- but imposed penalty @ 150% under Section 7(3) of the Act to the extent of ₹ 62,94,416/- vide Assessment order dated 21 September 2015, for AY 2010-11. Following the same, demand set aside - appeal allowed - decided in favor of appellant.
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