Case Law Details
Govt. of NCT of Delhi & Ors. Vs Indian Trade Promotion Org. & Ors (Delhi High Court)
Delhi High Court held that the respondent organizing trade fairs at Pragati Maidan, New Delhi is liable to pay entertainment tax. Accordingly, order passed by Financial Commissioner setting aside levy of entertainment tax held unsustainable.
Facts- It is the case of the petitioners that respondent 1 is an authority organizing Trade Fairs in the area commonly known as Pragati Maidan, New Delhi. It is stated that respondent No.1 charges admission fee in the form of ticket to allow people to visit fairs and also levy separate fee for other events such as Fashion Shows, Theatre Shows and Movies conducted within the same complex by individual organizations. The 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decision was taken on 18 November 1996 by the Competent Authority and exemption from payment of entertainment tax was withdrawn.
The petitioners invoke the extra ordinary jurisdiction of this Court under Article 226 read with Article 227 of the Constitution of India challenging the impugned order dated 30 November 2007 passed by the Financial Commissioner, Delhi/respondent No.2 in appeal, whereby the FC allowed the appeal filed by the respondent under Section 15(4) of the Delhi Entertainment and Betting Tax Act, 1996, setting aside the imposition/levy of entertainment tax by the petitioners.
Conclusion- Although, we are aware that 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.
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