https://www.taxtmi.com/caselaws?id=172560 A lump sum entertainment duty on video game parlours was upheld as a valid levy on the entertainment activity, with the machine serving only as a convenient measure for computation and not as the subject of taxation. The Court applied the settled fiscal principle that the legislature has wide latitude in designing the subject, mode and rate of tax, and that a lump sum method is not invalid for lack of mathematical precision. The area-wise and machine-based classification was also sustained because tax legislation permits broad classification, and the distinction between Greater Bombay and other areas had a rational nexus with the object of the levy. The constitutional challenge under Article 14 therefore failed. en-us Thu, 22 Sep 1988 00:00:00 +0530 Tue, 25 Aug 2015 12:57:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=172560 A lump sum entertainment duty on video game parlours was upheld as a valid levy on the entertainment activity, with the machine serving only as a convenient measure for computation and not as the subject of taxation. The Court applied the settled fiscal principle that the legislature has wide latitude in designing the subject, mode and rate of tax, and that a lump sum method is not invalid for lack of mathematical precision. The area-wise and machine-based classification was also sustained because tax legislation permits broad classification, and the distinction between Greater Bombay and other areas had a rational nexus with the object of the levy. The constitutional challenge under Article 14 therefore failed. Case-Laws Indian Laws Thu, 22 Sep 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=172560