The HC upheld the validity of the seventh proviso inserted by Maharashtra Act XLII of 2014 in Section 2(b) of the Maharashtra Entertainments Duty Act, affirming the State's legislative competence under Entry 62, List II of the Seventh Schedule. The Court held that convenience fees charged on online ticket booking constitute part of the "payment of admission" for entertainment and are thus subject to entertainment duty, distinct from the service tax levied by the Union on the service of online booking. The inclusion of convenience fees in the tax base does not amount to encroachment on the Union List, as the State taxes the entertainment itself, not the booking service. Allegations of violation of Articles 14 and 19 were rejected. Consequently, the impugned proviso was declared intra vires, and the petition seeking quashing of related Circulars was dismissed.
The HC upheld the validity of the seventh proviso inserted by Maharashtra Act XLII of 2014 in Section 2(b) of the Maharashtra Entertainments Duty Act, affirming the State's legislative competence under Entry 62, List II of the Seventh Schedule. The Court held that convenience fees charged on online ticket booking constitute part of the "payment of admission" for entertainment and are thus subject to entertainment duty, distinct from the service tax levied by the Union on the service of online booking. The inclusion of convenience fees in the tax base does not amount to encroachment on the Union List, as the State taxes the entertainment itself, not the booking service. Allegations of violation of Articles 14 and 19 were rejected. Consequently, the impugned proviso was declared intra vires, and the petition seeking quashing of related Circulars was dismissed.
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