Advance entertainment tax default and unauthorised connection justified penalty for tax evasion, with writ interference refused.

Entertainment tax payable in advance was withheld for about 15 months and paid only after inspection and inquiry, while the dish antenna connection was commenced without prior intimation to the authority. On these facts, the revisional authority was justified in sustaining the finding of tax evasion and in reducing the penalty to Rs. 50,000, and the writ court found no basis to interfere because the authority had considered the material on record and the reduced penalty was the maximum warranted on the facts. The petition therefore failed on merits and the revisional order was upheld.

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Issues: Whether the revisional authority was justified in sustaining the finding of tax evasion and reducing the penalty to Rs. 50,000, and whether interference was warranted in writ jurisdiction.

Analysis: The petitioner was required to pay entertainment tax in advance in quarterly instalments, but the tax remained unpaid for about 15 months and was paid only after inspection and inquiry. The connection was started without prior intimation to the concerned authority. On these facts, the revisional authority found irregularity in commencement of the dish antenna connection and evasion of tax liability, and reduced the penalty from Rs. 1,44,675 to Rs. 50,000. The writ court found that the revisional authority had considered the material on record and that the reduced penalty represented the maximum penalty justified on the facts.

Conclusion: The finding of tax evasion and the reduced penalty were upheld, and no interference was called for.

Final Conclusion: The petition failed on merits and the impugned revisional order was sustained.

Ratio Decidendi: Where tax payable in advance is withheld for a substantial period and paid only after inquiry, and the connection is commenced without prior intimation, a revisional authority may legitimately sustain liability and impose penalty for evasion.

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