TMI Blog1990 (5) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... lant-Government collects entertainment tax under the Entertainment Duty and Advertisement Tax Act, 1936 (hereinafter referred to as the 'Act') from the organisers of the entertainment-programmes whenever the entries to such programmes are charged. The entertainment tax is recovered at the rate of 36 per cent of the fee charged. In order to evade this tax, the respondents evolved a stratagem and organised two performances called Mahendar Kapoor Nite in a local auditorium, namely, Manas Bhawan Hall Wright Town Jabalpur, on 7th and 8th July, 1974. Although the Articles and the Memorandum of Association of the 1st Respondent did not permit them to do so, with a view both to bring the said programmes within the scope of the Articles of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the programmes on the basis of the membership cards, neither the membership cards were issued, nor the admission fee or the membership subscription were returned to the members, nor the performances were staged. In effect, the respondents made good with the money they had collected ostensibly for promoting savings. Thus both the members of the public were defrauded of their moneys as well the State Government of their tax revenue. 3. The District Excise Officer who was also the Entertainment Tax Collector under the said Act, sensing the ploy had, however, taken precaution to check, on both the said dates, the receipts and the amounts received by the respondents and had dexterously prepared a panchnama at the spot. He determined the amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refundable only after 10 years. The members were not issued the membership-cards nor were they left either with any trace of their membership forms or receipts for the payments they had made. Instead they were handed over entrance slips during interval which were collected at the door. The result was that even if the members were to claim an entry for programmes, if any in future, they would not have been able to do so. As it happened further, in fact, no programmes were ever staged at any time thereafter. The so called 'Nav Nirman Group did not have any legal existence. It was an amorphous body. The rules and regulations framed for the said body further showed some interesting features as follows: For the purpose of Prizes t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irst Draw shall be conducted, but in case total membership of the sub-group does not attain the target necessary to form the sub-group before date of the draw (which shall be announced through Newspapers) then the remaining membership number of the sub-group shall be treated as the Company's membership numbers and any prize/benefit accruing through these numbers as a result of the draw shall remain the Company's property. The Company may allot such membership numbers subsequently to the new applicants for the remaining period with the subsequent benefits only. The same rule shall apply to every further sub-group of one lakh members. X X X X X X Membership of the Group for 10 years and cannot be cancelled or withdrawn by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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