Entertainment tax cannot be extended to cable television operators by circular without statutory authority

Cable television operators were outside the charging provisions of the Bihar Entertainment Tax Act, 1948 because the Act's definitions of entertainment, admission and payment for admission did not expressly or by necessary implication cover cable services. The separate treatment of video exhibitions further indicated that cable television could not be added to the tax net by administrative circular. In the absence of an amending provision or valid notification, the Commissioner could not extend the levy by circular. Article 265 required taxation only by authority of law, so an executive circular could not create or widen a tax charge beyond the statute.

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Issues: Whether cable television operators fell within the charging provisions of the Bihar Entertainment Tax Act, 1948 so as to justify levy of entertainment tax and action under the impugned circular and show-cause notices, and whether the circular was ultra vires Article 265 of the Constitution of India.

Analysis: The charging provision applied only to "entertainment" as defined in the Act, and the definition proceeded on the basis that persons are admitted for payment. The scheme of the Act, including the definitions of admission, payment for admission, entertainment, and the machinery provisions for registration and collection, did not expressly or by necessary implication accommodate cable television operations. The Act contained a specific provision for video exhibitions, which reinforced that cable television could not be brought in by administrative circular alone. In the absence of an amending provision or a valid notification under the Act, the Commissioner could not, by circular, extend the tax net to cable operators. Article 265 prohibited levy or collection of tax except by authority of law, and an executive circular could not substitute for legislative authority.

Conclusion: The circular was ultra vires the Bihar Entertainment Tax Act, 1948 and Article 265 of the Constitution of India; cable television operators were not liable to entertainment tax on the basis of the impugned circular.

Final Conclusion: The writ petition succeeded and the impugned circular and consequential show-cause notices were quashed.

Ratio Decidendi: A tax can be imposed only where the charging statute clearly authorises it, and an executive circular cannot expand the scope of the taxing entry beyond the statutory definition or create a levy in the absence of legislative sanction.

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