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TMI Blog2013 (3) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... COURT OF INDIA) the Supreme Court has held that the State Government has legislative competence to levy entertainment tax through cable television network on MSOs as they have direct and close nexus with entertainment provided to viewers and they are the providers of entertainment. The Supreme Court has also held that levy of such entertainment tax on MSOs is neither discriminatory nor violative of Article 19(1)(g) of the Constitution. This decision was later followed by the Supreme Court in Indusind Media & Commun. Ltd. v. Mamlatdar (Supra) which was a matter from the State of Gujarat and an entertainment tax was levied on the MSOs. In this case, the Supreme Court has held that since such MSOs are connected to an organization of entert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the legislative competence of the State Government as they are already subjected to service tax for their services under section 65(105)(zs) of the Finance Act, 1994. According to them, entertainment tax is also contrary to the settled law and violative of Articles 14, 19(1)(g), 246 and 265 of the Constitution of India. 2. The State Government on the other hand, in its return, has defended the validity of the provisions of the Adhiniyam 2011 pursuant to which entertainment tax has been levied on the petitioners. The State has also relied upon the decision of the Supreme Court in State of West Bengal v. Purvi Communication Pvt. Ltd. AIR 2005 SC 1849 which the Supreme Court later followed in Civil Appeal Nos.7026-7029 of 2011 (Indusind Med ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bove, the petitioners are admittedly MSOs and they after receiving television signals transmit them to the cable operators and thereafter the cable operators further transmit signals to the subscribers. In State of West Bengal v. Purvi Communication Pvt. Ltd. (Supra) the Supreme Court has held that the State Government has legislative competence to levy entertainment tax through cable television network on MSOs as they have direct and close nexus with entertainment provided to viewers and they are the providers of entertainment. The Supreme Court has also held that levy of such entertainment tax on MSOs is neither discriminatory nor violative of Article 19(1)(g) of the Constitution. This decision was later followed by the Supreme Court in I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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