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 ... Levy of Entertainment tax - western classical music concert by the legendary Mr. Yanni proposed to be conducted on 14.04.2014 and 15.04.2014 - HELD THAT:- Once the live music concert falling under the definition of amusement under Section 3(2-A) and an entertainment tax on such amusement is to be levied under Section 4(F) of the Act, the clarificatory order impugned would reveal that the definition provided under the Act as well as the entertainment defined are considered by the First Respondent and accordingly, it was clarified that the legendary Thiru Yanni Live Concert conducted on 14.04.2014 and 15.04.2014 at Nehru Indoor Stadium would fall within the meaning of amusement and an entertainment tax shall be levied and paid to the State Government at the rate of ten percent on each payment for admission to the live concert on the said dates. There is no ambiguity in respect of the provisions of the Tamil Nadu Entertainment Tax Act 1939, the Petitioner is liable to pay the entertainment tax and the impugned clarificatory order is also in consonance with the provisions of the Act and there is no infirmity as such. Thus the Respondents are directed to proceed with the case of the Petitioner by following procedure as contemplated under the Act. Petition dismissed. 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.