Entertainment tax on video parlour games applies where coin-operated access amounts to payment for admission to entertainment.

Payment made for access to and enjoyment of video games in a video parlour is payment for admission to an entertainment under the applicable State enactment. The fact that the coin is inserted at a later stage of participation does not change the character of the levy or take it outside entertainment tax. The Court rejected the contrary view that the payer was only acquiring tools for personal performance, reaffirmed the earlier ruling on the point, and upheld taxability of the video parlour activity.

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Issues: Whether video games in video parlours are liable to entertainment tax as a payment for admission to an entertainment under the applicable State enactment.

Analysis: The earlier view that the payer was only obtaining tools for his own performance, and not paying for admission to an entertainment, was rejected. The Court reaffirmed that payment made by inserting a coin at a later stage of entry into a video parlour is nevertheless payment for admission to a place of entertainment, and the manner or stage of collection does not alter the character of the levy. The Court also declined to reconsider the law laid down in the earlier decision which had already disapproved the contrary view.

Conclusion: The video games in the video parlours were liable to entertainment tax, and the challenge to the levy failed.

Final Conclusion: The appeals succeeded, the High Court's orders were set aside, and the writ petitions were dismissed.

Ratio Decidendi: Payment collected for access to and enjoyment of a video parlour entertainment is payment for admission to entertainment, even if collected through coin-operated participation at a later stage.

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