Entertainment tax on discotheque entry fees upheld where the charge was treated as payment for admission to amusement

Entry charges for access to a discotheque with recorded music and dancing facilities were treated as payment for admission to an entertainment under the U.P. Entertainment and Betting Tax Act, 1937. The HC applied the broad charging provision and inclusive definitions of both "entertainment" and "payment for admission", holding that the discotheque had the required public character and amusement element. The fee was characterised as consideration for entry to the entertainment facility, not a mere membership charge, and the levy was upheld. The constitutional challenge under Articles 14 and 19(1)(g) was not pressed in argument.

---

---

Issues: Whether the charge collected for to a discotheque, where recorded music and dancing facilities were provided, constituted payment for admission to an entertainment liable to tax under the U.P. Entertainment and Betting Tax Act, 1937.

Analysis: The charging provision levied tax on all payments for admission to an entertainment, while the definition of entertainment was expressed in wide, inclusive terms. The definition of payment for admission was also broad enough to cover charges connected with attending the entertainment. Applying the tests laid down for determining whether an activity amounts to entertainment, the discotheque was held to have the required public character and element of amusement. The entry fee was not treated as a mere membership charge but as consideration for admission to the entertainment facility. The challenge under Articles 14 and 19(1)(g) was not pursued in argument.

Conclusion: The payment for entry to the discotheque was held to be taxable entertainment, and the levy was upheld against the assessee.

---