Strict construction of exemption entries excludes video games from "sports and games" relief under the tax notification.

The exemption for "all kinds of sports and games" under the Rajasthan Entertainments and Advertisements Tax Act was construed strictly, and coverage had to be clearly established by the claimant. Applying the common parlance meaning of "games" and "sports," video games and video game parlours were held not to fall within that exempted entry. The clarification dated 23.10.2004 was treated as an explanation of the existing scope of the exemption, and its exclusion of video games was upheld. The assessment and appellate orders were found legally sound, and no interference was warranted.

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Issues: Whether video games and video game parlours fall within the exemption for "all kinds of sports and games" under the notification dated 26.03.1999, and whether the clarification dated 23.10.2004 could validly state that such activity was outside the exempted entry.

Analysis: The exemption notification issued under section 7(2) of the Rajasthan Entertainments and Advertisements Tax Act, 1957 granted relief to specified classes of entertainment, including "all kinds of sports and games". The clarification of 23.10.2004 was treated as explaining the scope of that entry and not as withdrawing a vested benefit by an independent change in law. Applying the common parlance understanding of "games" and "sports", the Court held that video games and video game parlours do not fall within that expression. The Court also reiterated that exemption provisions must be construed strictly, and a claimant must clearly establish coverage within the exempted entry.

Conclusion: Video games and video game parlours are not covered by the exemption for "all kinds of sports and games", and the clarification excluding them was upheld.

Final Conclusion: The assessment and appellate orders were found free from legal infirmity, and the revision petitions did not merit interference.

Ratio Decidendi: An exemption notification must be construed strictly, and a clarificatory instrument may validly explain the scope of an exempted entry by reference to its common parlance meaning; activity not clearly covered by the exemption cannot claim its benefit.

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