ECit yProj ect sConst ruct ion Pvt Lt d 09e Pet it ioner v. Union Territ ory and ot hers

Learned counsel for t he pet it ionerhas cont ended t hat t he 1 Not ificat ion2622004 P69 issued under Sub Sect ion 19of Seclion 30f 1955Act is not t o t he act ivit yof t he pet it ioneras t he sam e pert alns Cinem a Ent ert ainm ent I t has funher been arguedt hat 1 0 C I C5 I Z r I a5 7 Z t l no separat e dut y on t he Rawat Seem a 2014.03.28 10: 45 True Scanned Copy Of The Original PHHC,Chandigarh Not ificat ion regardingt he chargingof ent ert ainm ent gam es has been issued by t he JOYTI RANI 2016.03.28 10:54 I attest to the accuracy and integrity of this document 92 e CWP Noe7559of 2009 11414 C 0 C I C5 I Z C I C45 nm w Z Qw under 1955 Act and t herefore order dat ed 182005 P5I 1S liable t o be set aside beingwhollywit hout j urisdict ionLearned counsel has also t hat t he im pugnedorder dat ed 1822005 P9 wasneit her served upon t he andno dem and t ax not ice of Annexure P5 was issued becam e awareof t he assessm ent orderonlyon 30A2009 upon t he receiptoft he t ax dem and not ice dat ed 10A2009 and t hereaft ert he PresentWrit was filed raisingt he quest ionsofj urisdict ion Per cont ra learned counsel for t he cont endedt hat t he Not ificat iondat ed 2622004 P69 issued by t he Com pet ent Aut horit yin exercise under Sub Sect iorl9 of Sect ion 30f 1955 Act wherebyt he rat e of ent ert ainm entdut ywas reduced t o 30I o was t o all ot her act ivit ies falling wit hin t he deflnit ion of Ent ert ainm entbesides t he Cinem a act ivit ies Therefore no separat e Not iflcat ionfor each act ivit ywas requiredHe has furt her raised t he pleaof ofalt ernat ive rem edydelayc laches The obj ect ionof delayand laches is not beingent ert ained becauset he in t heir replyhavenowherest at edt hat as t o how and lI l what m anner assessm ent order had been served upon t he pet it ioner it is also very difflcult t o acceptt hat t he pet it ionerwould not be of such an assessm ent order aft er having in t he However is also not disput edlat t ill April 2009 no dem andnot ice in pursuanceof t he assessm ent order had been served I t is also an adm it t edcase byt hepart iest hat in respectof assessm ent yearsno ent ert ainm entdut yhas been paidnor any assessm ent Rawat Seem a 2014.03.28 10: 45 True Scanned Copy Of The Original PHHC,Chandigarh have been init iat ed Furt herno doubt an alt ernat iverem edyin t he shapeof JOYTI RANI 2016.03.28 10:54 I attest to the accuracy and integrity of this document 93 CWP Noe7559of2009 8514 t o be filed wit hin 30 daysof such order under Sect ion 114l of 1955 Act is available and t he writ pet it ionhas been Oled wit hin 30 daysof of dem and not ice However inst ead of relegat ingt he pet it ionert o avail it s alt ernat iverem edywe have t o decide t he case since t he of Not ificat ion dat ed 2622004 369 and lack of j urisdict ionin passingt he im pugnedassessm ent order 6P59has been raised Therefore t he prelim inaryobj ect ionsraised are rej ect ed We have givenour considerat ion t o ot her rival subm issionsandt he pleadingsof t he part iesThe short issue raised byt he for our considerat ion is whet hert he Not icat ion dat ed 262004 Annexure P69 would be act ivit ies t o t he act ivit iesot her t han Cinem a or not I t would be for proper t o refer t o t he definit ion of ent ert ainm entand levyof t he Ent ert ainm entdut yunder 1955 Act Sub clause d9 of Sect ion 20f 1955 Act defines ent ert ainm ent and Sub Sect ion 619of Sect ion 3 of 1955 Act levy of ent ert ainm entdut y which readsas under includes any exhibit ion am usem ent gam e sport or t o which persons are ordinarilyadm it t ed on paym entor exhibit ion of m ovingpict uresor seriesofpict ureswhich are shown on t he film s or 56 1 t elevisionreceivingset wit h t he aid of any t ype of ant enna wit h a cable net work at t achedt o it or cable t elevision for which persons are requiredt o m ake paym entby way of cont ribut ion or subscript ionor inst allat ion and connect ion chargesor any ot her chargescollect ed in any m anner r 0 C C5 Z t r I a5 w Z t l what soever 3 Dut y on paym ent sfor adm ission t o ent ert ainm ent se A person adm it t ed t o an ent ert ainm entshall be liable t o pay JOYTI RANI 2016.03.28 10:54 I attest to the accuracy and integrity of this document Rawat Seem a 2014.03.28 10: 45 True Scanned Copy Of The Original PHHC,Chandigarh 94 CWP Noe7559of 2009 868 an ent ert ainm ent dut yat a rat e lnotexceedingone hundred and t went yflve per cent um of t he paym entfor adm issionl which t heGovernm entm ay specifyby a not ificat ionin t his behalf and t he said dut yshall be collect ed byt he propriet or andrenderedt o t he Governm entin t he m anner A plainreadingof definit ion of ent ert ainm entreveals t hatt here aret wo part sconcerningt he definit ion of ent ert ainm entwhich is ext ensive nat ure First part relat es t o any exhibit ion am usem ent race t o which a personis ordinarilyadm it t edon paym entand t he secondpartrelat es t o exhibit ion of fllm s or pict ures novingor series9 OI l t elevisionset s for which persons are t o m ake paym entin t he 1 m odes I n t he presentcase we are concernedwit h t he first partof t he definit ionwhich relat es t o t he act ivit yundert akenby t he pet it ioner nam elyplayingof video gam eson m achinesbyinsert ionof coin ofdenom inat ionofRsOl byt he m em bersof public I t has been adm it t ed byt he in t heir replydat ed 172005 6PA9t o t he show not ice 6P2 well as in t he st at em ent 1012005 0l of Sh Kum ar Team Coordinat or Finance of t he Com panyt hat wef 72200416 video gam esm achineshad been inst alled in t heprem isesoft he which are open t o t he m em bersof publicfor playing videogam eson insert ion ofcoins oft he denom inat ionofRs101 per gam e The am ount ofrevenue from t hesegam eshasalso been adm it t ed I t has not been disput ed111anym anner by t he learned counsel for t he pet it ionert hatt he act ivit yundert akenby t he pet it ioneris fully coveredby t he t est l crit eria laid down byHonble t he Suprem eCourt in Mls Geet a r 0 C I C5 Z I C45 7 Z Om Ent erprisesscase supral so as t o be covered under t he deft nit ion of Rawat Seem a 2014.03.28 10: 45 True Scanned Copy Of The Original PHHC,Chandigarh Ent ert ainm ent What has been urged1S t he JOYTI RANI 2016.03.28 10:54 I attest to the accuracy and t he integrity of this document 95 CWP Noe7559of2009 14714 dat ed 2622004 6P69t o such act ivit yundert aken by t he A readingof Sub Sect ion 619of Sect ion 30f 1955 Act m akes it t hat an ent ert ainm entdut ybecom espayablet he m om entt he person is adm it t edt o an and at such rat es which t heGovernm ent m ay speci67by Not icat ion which cannot be m ore t han hundredand t went yfive per cent um of t he am ount paidby t he person foradm ission t o such an ent ert ainm ent I t is furt her clear t hat such dut y which becom es has t o be collect ed byt he propriet orand rendered t o t heGovernm enin t he m anner I n t he presentcase it has not beendisput edt hat 1955 Act t o UT What has beencont ended is t hat AnnexureP69 t he cont ent s of Not i8cat ion dat ed 2622004 do not relat e t o act ivit ies like t he video gam es et c and t herefore no ent ert ainm entdut ycan beleviedand collect ed We are a8aid 1 0 C0 I C5 I Z t C I C6 t hat t heargum entis wholly m isconceived Ent ert ainm entdut y becom es payableon any act ivit ybeingundert akenanywherewhenever a person 1S adm it t edt o suchact ivit ywhich falls wit hin t he de8nit ion of ent ert ainm ent 1 m n Z 0 No separat eNot ificat ion wit h regardt o act lvlt leS 1S envisagedunder t he of 1955 Act Whatis providedunder Sub Clause 61 ofSect ion 3 0f1955 Act byissue ofNot iflcat ion byt heGovernm ent is t he rat e ofdut yt o be chargedwhich in any case lS not t o exceedone hundred and t went y 1 fiveper cent oft he paym entofadm ission chargesof ent ert alnm ent Adm inist rat ion by issue of Annexure P6 has only t he rat e of dut yt o 30I o inst ead of exist ing 50010on all publicClnem a exhibit ionsor any ot her ent ert ainm entplace Rawat Seem a 2014.03.28 10: 45 True Scanned Copy Of The Original PHHC,Chandigarh fallingin t he area of Union Territ ory I t has been specifically JOYTI RANI 2016.03.28 10:54 I attest to the accuracy and integrity of this document 1 0 0 C5 I Z C I 08 m W3 Z 96 1 CWP Noe7559of 2009 11811 t hat new rat e of30I o dut yis applicablet o any ot her ent ert ainm ent placebesidest he publicCinem a exhibit ionsin t he area of UT Thusit would m ean t hat t he act ivit ies like t he one undert akenbYt he would be exigiblet o ent ert ainm ent dut yat 30I o wef 262004 dat e of issue of Not iflcat ion P61 Thus it can be concluded t hat Not ificat iondat ed 2622004 AnnexureP69is fully t o t he case oft he m akingit liable t o pay Ent ert ainm entdut y The legalposit ionregardingexigibilit yt o Ent ert ainm entdut y on video gam es locat edin video areas hasbeen reit erat edbyHonble t he Court in St andard Gam es and Ot hers Ve St at e of UeP and Ot hers 199614 SCC 467 and St at e of MP and Anot her v Abha Set hi Sm t 199914 SCC 32 No ot herpointhas been urged I n view of t he aforesaid discussion we find no m erit in t he inst antpet it ionhence t he sam e is dism issed We are const rainedt o observe about t he funct ioningof t he offt cials t he Adm inist rat ion A huge Ent ert ainm entdut yliabilit yof t he was assessed on 182005 and direct ions were issued t o issue a t ax dem and not ice However t ill April 2009 no suchdem and not ice was issued for reasons best known t o t hem I n t he replyfiled by t he Depart m entno speci6c 4 averm ent shave been m ade wit h regardt o t he m anner of service of t he order Despit ea clear flndingin t he assessm ent order in respect of year 2004e05 6upt o31 Decem ber 20049regardingliabilit yt o pay Ent ert ainm entdut yno st epswere t akenfor fram ing assessm ent years The sit ualion is deplorableWe JOYTI RANI 2016.03.28 10:54 I attest to the accuracy and integrity of this document andrealizat ion for t he Rawat Seem a 2014.03.28 10: 45 True Scanned Copy Of The Original PHHC,Chandigarh 97 CWP No7559 of 2009 14914 t hat som e rem edial st epswould be t aken byAdm inist rat ion A fact inquiryshall be held by flxingliabilit yof t he ofcer who has of his dut yt o helpt he pet it ionerThe needful shall bedone wit hin t hree m ont hs and a copy of t he reportbe placedon record We furt her directt hat a copy of t his order be sent t o t he Adm inist rat or UT em a 1 MMKum arl Judge t 8 012010 m anoJ l4 1 C 0 3 I C5 Z l I 08 r Z Rawat Seem a 2014.03.28 10: 45 True Scanned Copy Of The Original PHHC,Chandigarh JOYTI RANI 2016.03.28 10:54 I attest to the accuracy and integrity of this document