TMI Blog1994 (3) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... s include T.V. tuning, checking of wires, replacement of wires, amplifier system, Tap off and other electronic items. The petitioners have to employ various people as servicemen to manage the correct functioning of the entire system and for removing any defect in the Cable network or other electronic items and in lieu of these services provided by the petitioners, the petitioners levy a nominal service charge from the consumers. 3. According to the petitioners till date no law for regulation of the operations of Dish Antennas has been passed or made by the Central Government and/or the State Government. 4. It appears that the Commissioner of Commercial Tax Patna issued a Circular dated 4.12.1992 to all Subordinate Commercial Tax Officers to the effect that having regard to the provisions contained in the Bihar Entertainment Tax Act 1948, Dish Antennas/Cable T.V. Operators who provide entertainment are liable to pay Entertainment Tax @ 110%-under Section 3 of the Act. A direction was issued for realisation of the tax from the cable operators. The aforesaid circular was issued after obtaining the opinion of the Advocate General of Bihar. The Circular is annexed as Annexure-1 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quired to make as a condition of attending or constituting to attend the entertainment in addition to the payment, if any for admission to the entertainment; 2(h)... 2(i) proprietor in relation to any entertainment includes any person responsible for or for the time being incharge of the management thereof; 2(j)... 2(k) ticket means a ticket for the purpose of securing admission to an entertainment. 10. Section 3 of the Act provides tax on entertainment and it reads as follows: 3. Tax on entertainment.--(1) Subject to the provisions of this Act, there shall be levied and paid to the State Government an entertainment tax at such rates not exceeding one hundred fifty percentum of the amount of payment chargeable for admission as the State Government may fix by a notification issued in this behalf and such tax shall be payable by the proprietor of an entertainment. (2) There shall further be levied and paid to the State Government, a tax at such rate, not exceeding rupees one hundred for every show of an entertainment as the State Government may from time to time fix and notify and such tax shall be deemed to be part of the entertainment tax and shall be payab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bed authority shall if he satisfied that the application is in order, register the applicant and grant him certificate of registration in the prescribed form. (4) If upon information which has come into its possession, the prescribed authority is satisfied that any proprietor has been liable to pay the entertainment tax in respect of any period and has nevertheless wilfully failed to apply for registrations, the prescribed authority shall, after giving the proprietor a reasonable opportunity of being heard, asses, to the best of his judgment, the amount of the entertainments tax, if any due from proprietor in respect of such period and all subsequent periods and the prescribed authority may direct that the proprietor shall pay, by way of penalty, in addition to amount so assessed, a sum not exceeding one and a half times of that amount. (5) When a proprietor of an entertainment, in respect of which a certificate of registration has been granted under Sub-section (3) has discontinued or closed down bis business as such proprietor, the prescribed authority shall cancel the registration with effect from the prescribed date. Section 7(A) of the Act provides for suspension or r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... And it is they, and not the Satellite owners, who are charging fee, in the name of service charges from the people. Every Cinema Operators does the same things for the audiance like Dish Antenna Operators, like maintaining Projectors and other audio-Visual equipments. But such acts are not main and primary acts they are incidental to the main act of providing entertainment through Cinema Projects in case of Cinema Operators and through Dish Anfena receiver-amplifier-cable systems in case of Dish Antenna Operators. So actually, they are charging towards the cost of providing entertainment. 16. Learned Govt. Advocate but tressed his argument by heavily relying upon Geeta Enterprises v. State of U.P. In the aforementioned case, the Hon'ble Supreme Court considered whether Video show was exigible for tax under the provisions of U.P. Entertainment Tax Act, 1937. The definition of 'entertainment' U.P. Act is para-material with Section 2(d) of the Bihar Entertainment Tax Act. The Hon'ble Supreme Court ascertained the correct meaning and import of the word 'entertainment' and in para 6 of the report: Entertainment...for a PUBLIC OR SPECIAL Occasion ... is an e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ude any kind of amusement, game or sport. It cannot be disputed in the present case that by operating the video, the operator of the video pays 50 paise per 30 seconds for playing the games, sports and other kind of performances whichare shown on the machine and which can be watched by interested spectators. 18. In my opinion/reliance on the aforesaid decision by the learned Govt. Advocate is totally misplaced and does not support his contention that Cable T.V. operators likewise will be subject to Section 3 of the Bihar Act. It is worthy to note that specific provision has been made in the Bihar Act for tax on Video shows. 19. In my considered opinion, Section 2(d) of the Act plainly is not attracted since there is no question of persons being admitted for entertainment. Having regard to the existing provision of the Act, the Act is unworkable so far cable operators are concerned and unless amendment is made in the Act, no entertainment tax can be levied merely on the circular of the Commissioner, Commercial Taxes. Assuming that under Section 3 of the Act the petitioners are liable to pay entertainment tax in absence of any notification by the State Government under Sub-sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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