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2023 (10) TMI 160 - HC - VAT and Sales TaxImposition/levy of entertainment tax by the petitioners - admission fee in the form of ticket to allow people to visit trade fairs / Pragati Maidan - grievance of the petitioners is that respondent No. 1 was initially exempted from payment of entertainment tax for several years but a policy decision was taken on 18 November 1996 by the Competent Authority and exemption from payment of entertainment tax was withdrawn - HELD THAT:- A careful perusal of the various provisions would show that Section (6) is the charging Section whereby the government may prescribe a levy of entertainment tax on all “payments for admission to any entertainment”, while Section 15 of the Act lays down the procedure for the assessment of tax. A bare perusal of unamended Section 2(a) of the Act, which would be applicable in this case, as it stood prior to the amendment w.e.f. 01 February 2010 would show that it is an inclusive definition defining “admission to any place in which entertainment” subject to the context in which it comes for consideration that may provide otherwise. Further, a bare perusal of the Section 2(i) of the Act would show that the definition of the word “entertainment” is a restricted one to mean any exhibition, performance, amusement, game, sport, or race, further extending the meaning of “entertainment” to cinematographic exhibitions. In the case of GEETA ENTERPRISES AND OTHERS VERSUS. STATE OF U.P. AND OTHERS [1983 (9) TMI 319 - SUPREME COURT], the Supreme Court had an occasion to interpret the word “Entertainment” as used in Section 2(3) of the United Provinces Entertainment and Betting Tax Act, 1937, which defined the word “entertainment” to include any exhibitional, performance, amusement, game or sport to which persons are admitted for payment. The issues arose in the background of the factual matrix where the assessee/petitioner permitted persons to enter the premises without any charge to view a show on the video which consisted mainly of sports, games etc. played on the screen of the video. It was canvassed that the petitioner was not charging any admission fee but the electronic machines imported from Japan having educational value for persons playing the games were meant to provide educational entertainment by showing sea warfare, battle field, space warfare, sports and many other things which were likely to provide both education and entertainment to the viewers, particularly to young children. In the case of HOTEL RAJDOOT PVT. LTD. VERSUS UNION OF INDIA (UOI) AND ORS. [2008 (8) TMI 1022 - DELHI HIGH COURT], the question for determination was whether the petitioner was liable to pay entertainment tax on the payment received for admission to “Pussycat Discotheque” in its Hotel under the provision of U.P. Entertainment and Betting Tax Act, 1937, as extended to Union Territory of Delhi in which Section 3(1) was the charging Section. Section 2(3) of the above mentioned Act defined the word “entertainment” to include any exhibition, performance, amusement, game or sport to which persons are admitted for payment - It was held that entertainment tax was leviable on the coverage/fixed entry charges to access to the discotheque, this Court out rightly rejected the plea by the petitioner that the primary object of running the “Pussycat discotheque” was to provide a different menu and atmosphere to the customers. The Court found no merit in the plea that only couples were permitted entry so that there could be an element of privacy. It was held that the petitioner was charging entry fee and the serving of meals and alcohol undoubtedly had an element of amusement as the customers were not only enjoying music but also dancing on the floor. There are regulated hours for the purposes of trade and commerce, where the main purpose apparently is promotion of trade and business, however there is no challenge to the fact that entry of general public is not restricted, and people of all ages and genders visit the site for a variety of gratification, entertainment or amusement on payment of additional or higher charges/fee. It is pertinent to mention here that the assessee may also be imposed with a levy of entertainment tax wherever people are allowed free of charge inside the complex by virtue of Section 14 of the Act. The impugned order dated 30 November 2007 passed by the FC cannot be sustained in law - Petition allowed.
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