2016 (12) TMI 1304 - HC - VAT and Sales Tax

Demand to deposit tax arrear - Entertainment tax - computation error - Held that - It appears that number 452 is a typographical error since after deducting 302 cable connections from 759 cable connections, the balance would come to 457 cable connections. Thus, the fact of conducting the survey in presence of the petitioners and fact of 457 cable connections are admitted by the petitioners as per their grounds of appeal - no error or perversity in the findings of fact recorded by the appellate authority. The petitioners could not demonstrate even before this court any error in computation of entertainment tax - petition dismissed.

Summary

Issues:
Challenging orders under U.P. Entertainment and Betting Tax Act, 1979; Dispute over cable connections and entertainment tax computation.

Analysis:
The writ petition challenged various orders under the U.P. Entertainment and Betting Tax Act, 1979, including the District Magistrate's order, the Commissioner's appellate order, and the recovery order. The petitioners, engaged in the cable TV business, disputed the number of cable connections found during a survey by the Entertainment Tax Department. Initially, 552 connections were identified, leading to an assessment based on 759 connections, resulting in a tax liability and penalty. Subsequent legal actions included appeals, writ petitions, and fresh surveys. A final survey revealed 457 cable connections, leading to a demand for entertainment tax and penalties. The appellate authority confirmed the number of connections and upheld the tax computation, leading to the current challenge.

The petitioners contended that they never admitted to 400 or 457 cable connections, alleging that the assessments were based on flawed paperwork. However, the court noted that the petitioners' own appeal grounds acknowledged the survey's presence and the existence of 457 connections, despite a typographical error mentioning 452 connections. The court found no error in the appellate authority's factual findings or the entertainment tax computation. The petitioners failed to demonstrate any mistakes in the tax assessment, undermining their objections.

In the court's view, the petition lacked merit as the number of cable connections and the tax computation were substantiated by the petitioners' own submissions. The court dismissed the writ petition, emphasizing the absence of errors in the findings or the tax calculation. No costs were awarded in this matter.