Writ maintainability and conditional tax stay follow where the demand falls outside the statutory appeal route
A writ petition was held maintainable where the impugned entertainment tax demand arose from an audit objection and not from an assessment order covered by the statutory appellate route, making the alternate remedy prima facie unavailable. On interim relief, the record showed an eligibility certificate and a policy framework extending exemption to eligible tourism units, including water parks, creating a prima facie case for protection. Conditional stay was granted, with continuation of relief made subject to deposit within the stipulated time.
Issues: (i) whether the writ petition was maintainable in view of the appellate remedy under the Maharashtra Entertainment Duty Act; (ii) whether interim protection could be granted against the Collector's demand for entertainment tax.
Issue (i): whether the writ petition was maintainable in view of the appellate remedy under the Maharashtra Entertainment Duty Act.
Analysis: The challenged demand was found to arise from an audit objection and not from an assessment order referable to Section 4B of the Maharashtra Entertainment Duty Act. Since the statutory appeal under Section 10A was held to be linked to orders passed under Section 4B, the appellate remedy was treated as prima facie unavailable on the facts presented.
Conclusion: The writ petition was held maintainable.
Issue (ii): whether interim protection could be granted against the Collector's demand for entertainment tax.
Analysis: The record disclosed an eligibility certificate and a policy framework extending exemption to eligible tourism units, including water parks. The Court found a prima facie case in favour of the petitioner, while also noting that the dispute concerned tax dues and that any interim relief had to be conditional. A stay was therefore made subject to deposit.
Conclusion: Interim stay was granted subject to deposit of Rs. 2 crores within the stipulated time.
Final Conclusion: The petition was entertained and protected by an interim stay, while the respondents were put to notice and the petitioner was required to comply with a monetary condition for continuation of that protection.
Ratio Decidendi: When the impugned demand is not shown to arise from an order covered by the statutory appeal provision, and the record discloses a prima facie entitlement to exemption, writ intervention and conditional interim protection may be granted.
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