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TMI Blog1971 (1) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... for being admitted to witness the entertainment, inclusive of the various items mentioned in clause (b) of section 2 of the Bombay Entertainment Duty Act, 1923. The amount which a person pays includes both sums-(i) what the Manager has to pay by way of duty; and (ii) what the Manager can retain as Net receipts' and hence the duty has to be charged on the total amount payable by the person buying the ticket, including any SLIM charged separately by way of duty. Pursuant to that notification entertainment duty was levied on the gross sum levied and paid by the visitors for admission to the theatre. By a petition moved in the High Court of Gujarat the appellants challenged the validity of the memorandum 'dated January 11, 1962 and the notice of demand issued pursuant thereto and urged that the primary liability for payment of entertainment duty is by the Act imposed upon the visitor to the theatre, and that the proprietor of the theatre is merely an agent of the Government for collecting the duty : and that the proprietor has under the Act to pay the duty which he collects from the visitors; and that he cannot be required to pay an amount which he does not collect from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... combined with the right of admission to any enter- tainment or involving such right of admission without further payment or at a reduced charge, the entertainments duty shall be paid on the amount of the lump SUM. Section 3A provides for payment of duty at the appropriate rates on complimentary tickets. By that section entertainment duty at the appropriate rates prescribed under s. 3 is payable as if full payment had been made for admission to the entertainment according to the class of seat or accommodation which the holder of such, ticket shall, be deemed to have been admitted for payment for the purpose of the Act. Section 4 provides for-the method of levy of duty. It provides, insofar as it is relevant : (1) Save as otherwise provided by this Act, no person other than a person who has to perform some duty in connection with an entertainment or a duty imposed upon him by any law, shall be admitted to any entertainment, except with a ticket stamped with an impressed, embossed, engraved or adhesive stamp(not before used) issued by the State Government for the payments for admission to the entertainment duty, has been paid. (2) The State Government may, on the application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a ticket is not issued for an individual show but payment is received by means of a lump sum as subscription or contribution to any society, or by. season ticket or for the right of admission to a series of entertainments or during ascertain period of time, or for any privilege, right, facility, thing combined with the right of admission to any entertainment without further payment or at a reduced charge, the entertainments duty is payable on the lump sum : see s. 3 (2). Where a complimentary ticket is issued the duty is payable by the proprietor at the appropriate as if full payment had been made rate prescribed under the Act for admission to the entertainment. These provisions leave no room for doubt that liability for payment of the duty is imposed upon the proprietor and not upon the visitors to the theatre. Under s. 4(1) on the ticket for admission to any entertainment, an impressed, embossed, engraved or adhesive stamp (.not before used) issued by the State Government of the value specified. in s. 3 must be affixed. The price which the visitor pays for a ticket for admission to 'an entertainment is the value of the stamp affixed and the net value of the ticket. But the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ross amount received by sale of tickets and the amount of duty payable to the State Government. Under section 4(2) (a) the consolidated payment is a percentage of the gross sum (.not charge and the entertainment duty) received by the proprietor on account of payments for admission to the entertainment. That duty is charged under s. 4 (2) (b) in accordance with the returns relating to the payments for admission to the entertainment, under r. 16 the duty is again chargeable on the gross amount received by the proprietor. The definition of the expression payment for admission in S. 2(b) of the Act, is an inclusive definition; it includes by clause (iv) payment for any purpose whatsoever connected with an entertainment which a person is required to make as a condition of attending or continuing to attend the entertainment . In our judgment entertainment duty is a payment which the proprietor is required to make as a condition for enabling visitors to attend or continue to attend the entertainment. Without such a payment the visitor cannot be admitted to the entertainment under s. 4(1) of the Act. That being so the expression payment for admission includes entertainment duty. We ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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