2022 (5) TMI 558 - BOMBAY HIGH COURT - CST, VAT & Sales Tax

Head Note / Extract:
Levy of advertisement tax - MSOs - conduct of business thereby transmitting signals of various channels belonging to different broadcasters to LCOs and includes broadcasting of private and local advertisements - demand of fine and penalty as well - HELD THAT:- It is trite that a taxing statute has to be strictly construed. No tax can be levied except in accordance with law. Reading the provisions, it is manifest that the advertisement tax is levied on advertisement at any place of entertainment where the advertisement is exhibited for payment. The MSOs, it appears, only transmit the signals of various TV channels belonging to different broadcasters to LCOs who, in turn, retransmit signals for viewership by their own viewers. If the Petitioners are only transmitting the signals, then, in such an event, they cannot be made liable to pay advertisement tax in terms of the Advertisement Tax Act. The advertisement is not exhibited at its place, as the MSOs only transmit the signals of various channels belonging to different broadcasters to LCOs, unless the Respondents could demonstrate that the MSOs independently received the advertisements. The MSO in the present case only retransmits the programing services received from broadcaster and/or his authorized agency or transmits his own programing services for simultaneous reception either by multiple supplier directly or through one or more LCOs. The MSO is only retransmitting the programing services received from the broadcaster. It is not the case of the Respondent Department that the Petitioner is transmitting his own programming services for simultaneous reception and that he has received the advertisement for consideration so as to be made liable for the advertisement tax. Petitioner is issued with the demand and is penalized purportedly under Section 4 of the Advertisement Tax Act and non compliance of Section 4 of the Entertainment Charges Act (Maharashtra Entertainments Duty Act) - HELD THAT:- Section 4 of the Entertainment Charges Act 1923 only states no person other than a person who has to perform some duty in connection with an entertainment or a duty imposed upon him by any law, shall be admitted to any entertainment except with a valid printed ticket or complimentary ticket. In the present case, said question does not arise. The impugned notice cannot be sustained and is quashed and set aside - Petition allowed.