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TMI Blog2023 (10) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... hich entertainment subject to the context in which it comes for consideration that may provide otherwise. Further, a bare perusal of the Section 2(i) of the Act would show that the definition of the word entertainment is a restricted one to mean any exhibition, performance, amusement, game, sport, or race, further extending the meaning of entertainment to cinematographic exhibitions. In the case of GEETA ENTERPRISES AND OTHERS VERSUS. STATE OF U.P. AND OTHERS [ 1983 (9) TMI 319 - SUPREME COURT] , the Supreme Court had an occasion to interpret the word Entertainment as used in Section 2(3) of the United Provinces Entertainment and Betting Tax Act, 1937, which defined the word entertainment to include any exhibitional, performance, amusement, game or sport to which persons are admitted for payment. The issues arose in the background of the factual matrix where the assessee/petitioner permitted persons to enter the premises without any charge to view a show on the video which consisted mainly of sports, games etc. played on the screen of the video. It was canvassed that the petitioner was not charging any admission fee but the electronic machines imported from Japan having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondents Through: Mr. P.K. Sahu, Adv. JUDGMENT DHARMESH SHARMA, J. 1. 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 [FC] in appeal case bearing No. 33/01-CA, whereby the FC allowed the appeal filed by the respondent under Section 15(4) of the Delhi Entertainment and Betting Tax Act, 1996 [The Act] , setting aside the imposition/levy of entertainment tax by the petitioners. FACTUAL BACKGROUND: 2. Briefly stated, it is the case of the petitioners that respondent No. 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 fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, officers are appointed by the Government to assist the Commissioner in the execution of his functions under the Act and they are required to exercise such powers as may be conferred and perform such duties as may be required by or under the Act. The respondent claims that the appeal has been heard by the Deputy Commissioner duly appointed u/s 3(2) of the Act and who, under the provisions of Rule 2(iii), was exercising powers and performing functions of the Commissioner u/s 15 of the Act. I do not agree with the counsel for the appellant that powers u/s 15(3) can only be exercised by the Commissioner because there is a specific provision which allows for appointment of Deputy Commissioner for exercising powers and performing functions of the Commissioner under different sections; including u/s 15(3) of the Act and this finds particular mention under Rule 2(iii) of the Act. The appellant has not relied on any document to show that the powers of the Deputy Commissioner, appointed u/s 3(2) of the Act, had been circumscribed to specifically exclude performing functions of the Commissioner u/s 15(3) of the Act. I therefore conclude that the impugned order does not suffer from the inf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fair concentrates the purchasers of a product, attracts buyers from all over the world and allows the companies to make product presentation, assess audience interest and buyer reaction and also to assess the competition from other exporters. The counsel has dwelt at length to establish a distinction between entry ticket vis- -vis the admission charge for fashion shows, film shows etc. which are organised separately. The counsel for the respondent has accepted that the appellant is an authority which conducts trade fairs and that apart from the admission fee paid by people who enter the fair, a separate fee is being charged for fashion shows, trade shows and movies, being conducted by individual organizations within the same complex. The counsel has relied upon the provisions of section 2(i) to emphasize that any exhibition organized in trade fair, where entry fee is paid, is liable to pay entertainment tax and hence entertainment tax is payable for entry and also whenever special shows with tickets are performed. It has relied upon the test laid down by the Hon'ble Apex Court for a show to fall under the ambit of section 2(3) in the judgement reported in (1983) 4 SCC 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of visitors within the trade fair grounds and that this fee did not automatically permit the visitors to gain entry into individual entertainment centres, providing entertainment through separate admission fee. The impugned order also shows that there was sale of tickets for the fashion shows and film shows, as distinct from the entry fees. I therefore conclude that the impugned order suffers from the infirmity that it has not analysed in detail how entry tickets to the fair grounds attracted entertainment tax as distinct from that leviable on tickets for film shows, fashion shows etc. The impugned order has concluded that in the present case any person gaining entry to the trade fair, was being provided entertainment or amusement on the basis of that entry fee, since the entry fee did not restrict the entry to bonafide purchasers nor adjusted in the fee against any purchases. The impugned order has mentioned that the appellant has been organizing exhibitions, shows, films, fashion shows etc. I conclude that admission to these events would attract the provisions of the Act, as distinct from the entry fee to the trade fair grounds, particularly when such events were allowing admi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustry and commerce and the place is one such platform where the buyers and sellers come together for boosting the prospects of trade and commerce. It was urged that the word exhibition appearing in Section 2(1) of the Act includes only those exhibitions where the primary purpose is to provide entertainment to the visitors. Referring to the meaning of Trade Fair as given in the Encyclopaedia Britannica [Volume 11, 15th Edition] it was vehemently urged that the word exhibition has to be construed under Section 2(i) of the Act keeping in mind the other like expressions viz. performance , amusement , games sports , race exhibition of feature films ; and exhibitions in the Trade Fairs are not organized for the purposes of entertainment. Mr. P.K. Sahu, in his submissions, also relied on the same decisions as referred to by the learned Additional Standing Counsel for the petitioners except making a valiant effort to distinguish the same. DECISION : 7. Having given our thoughtful consideration to the submissions advanced by the learned counsels for the rival parties at the Bar and on consideration of the relevant provisions and case law cited at the Bar, we find th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereof, for admission to which a payment involving tax or more tax is required; (vi) any payment made by a person by way of contribution, subscription, installation or connection charges or any other charges collected in any manner whatsoever for entertainment through direct-to-home (DTH) broadcasting service for distribution of television signals and value added services with the aid of any type of addressable system, which connects a television set, computer system at a residential or non residential place of subscriber's premises, directly to the satellite or otherwise. [Explanation 1: Any subscription raised, contribution received or donation collected in connection with an entertainment, where admission is partly or entirely by tickets/invitation specifying the amount of admission or reduced rate of ticket shall be deemed to be payment for admission; Explanation 2 : Any sponsorship amount paid or value of goods supplied or services rendered or benefits provided to the organizer of an entertainment programme in lieu of advertisement of sponsor's product/brand name or otherwise shall be deemed to be payment for admission;] [17 Both explanation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntertainment, referred to in sub-section (1), is made wholly or partly, by means of a lump sum paid as subscription, contribution, donation or otherwise, the tax shall be paid on the amount of such lump sum and on the amount of payment for admission, if any, made otherwise. (7) Where in a hotel or a restaurant, or a club, entertainment is provided by way of cabarets, floor shows, or entertainment is organised on special occasion along with any meal or refreshment with a view to attract customers, the same shall be taxed at a rate to be notified under sub-section (1). x x x x x 15. Assessment of tax (1) Where the assessing authority is satisfied that the proprietor of an entertainment (a) has failed to give information or take permission as required under sub-section (1) or, as the case may be, under sub-section (2) of section 8; or (b) has failed to submit true and full returns in the prescribed form; or (c) has printed, distributed, possessed, sold or used duplicate tickets; or (d) has fraudulently evaded or attempted to evade, the payment of tax due in any manner whatsoever, it shall, after giving the proprietor a reasonable oppo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssues involved, we shall refer to a few. 10. In the case of Geeta Enterprises (supra), the Supreme Court had an occasion to interpret the word Entertainment as used in Section 2(3) of the United Provinces Entertainment and Betting Tax Act, 1937, which defined the word entertainment to include any exhibitional, performance, amusement, game or sport to which persons are admitted for payment. The issues arose in the background of the factual matrix where the assessee/petitioner permitted persons to enter the premises without any charge to view a show on the video which consisted mainly of sports, games etc. played on the screen of the video. It was canvassed that the petitioner was not charging any admission fee but the electronic machines imported from Japan having educational value for persons playing the games were meant to provide educational entertainment by showing sea warfare, battle field, space warfare, sports and many other things which were likely to provide both education and entertainment to the viewers, particularly to young children. The mechanism for playing the machine was so designed that a coin of 50 paise was to be inserted into a strong box built within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diversion, distraction, recreation, fun, play, good time, pastime, novelty, pleasure, enjoyment, satisfaction. In Webster's Third New International Dictionary the word entertainment has been defined at p. 757 thus: Entertainment the act of diverting, amusing or causing someone's time to pass agreeably. Something that diverts, amuses, or occupies the attention agreeably. A public performance designed to divert or amuse. Similarly in the Concise English Dictionary by Hayward and Sparkes the word entertainment has been defined thus: the art of entertaining, amusing or diverting, the pleasure afforded to the mind by anything interesting, amusement, other performance intended to amuse. 11. Thus, on a consideration of the legal connotation of the word entertainment as defined in various books and other circumstances of the case as also on a true interpretation of the word as defined in Section 2(3) of the Act, the Supreme Court held that the video show was to be subjected to entertainment tax. In holding so, the following tests were laid down for the applicability of the Section: (1) that the show, performance, game or sport, e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a condition of attending or continuing to attend the entertainment in addition to the payment, if any, for admission to the entertainment. 13. It was held that entertainment tax was leviable on the coverage/fixed entry charges to access to the discotheque, this Court out rightly rejected the plea by the petitioner that the primary object of running the Pussycat discotheque was to provide a different menu and atmosphere to the customers. The Court found no merit in the plea that only couples were permitted entry so that there could be an element of privacy. It was held that the petitioner was charging entry fee and the serving of meals and alcohol undoubtedly had an element of amusement as the customers were not only enjoying music but also dancing on the floor. Thus admission to a discotheque was held to be a place where an entertainment was held as such it clearly fell within the definition of entertainment under Section 2(3) of the Act. The same was held in an earlier decision in the case of The East India Hotels Limited (supra.) 14. Avoiding unnecessary burden in this judgment, we find that the facts of the decision in an earlier case titled Maharaja Jaipur Muse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12. I have carefully gone through the decided cases relied on by learned counsel for both the parties and I feel that they do not throw much light on the real controversy that has been raised in the instant case. Where the Act itself provides a definition for the word used therein, the Court should look into the meaning assigned to the term by the Act itself for interpreting that word used in the statute. The Courts are not concerned with the presumed intention of the Legislature. The task of the Court is to get the intention of the Legislature as expressed in the statute itself. I, therefore, propose first to examine the language of the definition and see if the ordinary accepted notion of entertainment fits in squarely and fairly with the language used by the Legislature that defined the expression entertainment . 13. In the present case, the definitions of entertainment , payment for admission and admission to an entertainment are not precise and they are inclusive definitions which undoubtedly enlarge the scope of the expressions used in the statutes. I have, therefore, now to see whether the exhibition of articles put in the museum does fall within the definiti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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