Entertainment tax law requires prior intimation and security compliance, but not a No Objection Certificate before holding the event.

The entertainment tax framework required prior information before holding taxable entertainment, together with compliance with the prescribed security regime, but it did not create any requirement to obtain a No Objection Certificate. The charging, information, security, exemption, return, payment and assessment provisions were read as a complete code: at the initial stage the authority could take only a prima facie view to ensure compliance, require furnishing or enhancement of security, and prohibit the event on breach. The statutory scheme contemplated prior intimation and revenue protection, not pre-clearance by way of an NOC.

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Issues: Whether the entertainment tax law required the organiser to obtain a No Objection Certificate from the entertainment tax authorities before holding the event, or whether the statutory scheme contemplated only prior information, furnishing of security, and possible prohibition in case of non-compliance.

Analysis: The statutory scheme defined "entertainment", "payment for admission", and "proprietor", and required prior information to be furnished before holding taxable entertainment. The Rules prescribed the manner of such intimation in the prescribed forms and also contemplated deposit of security under the Act. The Court analysed the charging, information, security, exemption, return, payment, and assessment provisions together and held that they formed a complete code. It distinguished the stage of prior information and security from the later stage of assessment under the Act. At the initial stage, only a tentative or prima facie view was required for ensuring compliance and safeguarding revenue. If security was not furnished or was inadequate, the authority could direct furnishing of security or enhanced security, and in case of breach could prohibit the event. The Act and Rules did not expressly or impliedly provide for issuance of a No Objection Certificate by the entertainment tax office.

Conclusion: The demand for a No Objection Certificate from the entertainment tax authorities was not supported by the Act or the Rules. The organiser was required to give prior information and comply with the security regime, but not to obtain an NOC from the entertainment tax office.

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