2021 (10) TMI 191 - HC - VAT and Sales Tax

Music concert subject to entertainment tax under Tamil Nadu law.

The court upheld the clarificatory order on entertainment tax for a music concert, determining that the concert fell under the definition of amusement and ... Definition of 'amusement' under the Tamil Nadu Entertainment Tax Act - entertainment tax on admission to amusement - liability to pay entertainment tax - clarificatory order in tax administrationDefinition of 'amusement' under the Tamil Nadu Entertainment Tax Act - entertainment tax on admission to amusement - liability to pay entertainment tax - Live western classical music concert conducted on specified dates falls within the definition of 'amusement' and is subject to entertainment tax leviable on each payment for admission. - HELD THAT: - The Court examined the statutory definitions of 'Entertainment' and the separately inserted definition of 'Amusement' and concluded that amusement includes any amusement for which persons are required to make payment for admission to events such as concerts. Section 4(F) levies a tax at ten per cent on each payment for admission to an amusement and makes the tax recoverable from the proprietor. Applying these provisions to the facts, the live music concert conducted under the name 'Yanni Concert' on the specified dates at the stadium falls within the statutory meaning of amusement and hence attracts the entertainment tax under the Act. [Paras 6]The concert is taxable as an 'amusement' and entertainment tax is leviable on each admission payment.Clarificatory order in tax administration - liability to pay entertainment tax - The clarificatory order issued by the first respondent determining that the concert is taxable is valid and the authorities may proceed with assessment and recovery in accordance with the Act. - HELD THAT: - The Court found the impugned clarificatory order to be self-speaking and consistent with the statutory definitions and the levy provision. There being no ambiguity in the relevant provisions, the order correctly clarified that the concert would fall within the meaning of amusement and that entertainment tax at the prescribed rate should be levied and paid. Consequently, the stay of assessment caused by the challenge to the clarification is lifted and the respondents are directed to proceed with the petitioner's case following the procedure under the Act. [Paras 6, 7, 8]The clarificatory order is upheld; respondents may proceed with assessment and recovery under the Act.Final Conclusion: Writ petition dismissed; the High Court upholds the clarification that the live concert is taxable as an amusement and directs the tax authorities to proceed with assessment and recovery in accordance with the Tamil Nadu Entertainment Tax Act. Issues:Challenge to clarificatory order on entertainment tax for a music concert.Analysis:The writ petition was filed to challenge a clarificatory order by the First Respondent regarding the imposition of entertainment tax on a music concert proposed to be conducted by a legendary artist. The petitioner argued that the concert does not fall under the Tamil Nadu Entertainment Tax Act's ambit and should not be taxed. The petitioner relied on the definitions of entertainment and amusement under Sections 3(4) and 3(2-A) of the Act to support their argument.The government advocate representing the respondents contended that the clarificatory order was self-explanatory, and the definitions under the Act were clear. The government advocate argued that the live concert would fall under the definition of amusement, making it taxable under the Act. Section 4(F) of the Act specifies the tax to be levied on amusement at a rate of ten percent on each payment for admission.The court referred to the definitions of 'entertainment' and 'amusement' under the Act and noted that the live music concert would indeed fall under the definition of amusement, thereby subjecting it to entertainment tax. The court found no ambiguity in the provisions of the Act and upheld the impugned clarificatory order, directing the petitioner to pay the entertainment tax as per the Act's requirements. Consequently, the writ petition was dismissed, with no costs imposed, and the connected miscellaneous petition was closed.