Broad construction of entertainment tax law brought video games within taxable entertainment under the Act.

The U.P. Entertainment and Betting Act, 1979 was construed broadly because the definitions of "entertainment", "admission to an entertainment" and "payment for admission" were inclusive, not restrictive. Video games were treated as a form of amusement and enjoyment, and coins inserted to operate the machines were held to be payment connected with entertainment and a condition of attending it. The Court also rejected the argument that entertainment requires a public performance, separate entertainer, and audience, holding that self-directed participation can still amount to entertainment. On that basis, video games fell within the Act and the notification imposing entertainment tax on them was valid.

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Issues: Whether video game machines constituted an "entertainment" under the U.P. Entertainment and Betting Act, 1979 so as to attract entertainment tax on the coins inserted for playing the games, and whether the impugned notification prescribing tax on video games was valid.

Analysis: The charging provision levied entertainment tax on payments for admission to any entertainment, and the statutory definitions of "entertainment", "admission to an entertainment" and "payment for admission" were inclusive and therefore required a wide construction. The Court held that the context did not show any restrictive use of the word "includes". It further held that with scientific and technological developments, new forms of amusement may fall within the statutory concept of entertainment. Video games were found to provide amusement and enjoyment to the player, and the money paid to operate the machine was a payment connected with entertainment and a condition of attending it. The Court rejected the contention that entertainment must involve a public performance, a distinct entertainer and audience, holding that even self-directed participation could amount to entertainment.

Conclusion: Video games fell within the ambit of the Act, and the notification prescribing entertainment tax on video games was valid.

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