TaxTMI 
TaxTMI 
2011 (1) TMI 1267
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....at the aim of the said activity is to educate and train people; to improve their driving skills and to teach the discipline skills during driving and competitions around any given track. In all the cases, the petitioners have established resorts providing facilities for swimming, games of billiards, pool, etc., and the entry is limited to members, who pay their subscription amount in lump sum or on monthly/ yearly basis. The issue in all these petitions is common as to whether such activities carried out by the persons, who are participating in the sports or such like activity, are liable to entertainment duty under the Act. It is the case of the petitioner that the entertainment duty is payable by a person, who is being entertained, i.e., the viewers of a sport activity, but one who is performing theatre or art or participates in artistic or participating in the sporting activity, is not liable to pay any entertainment duty, as he is a person who is entertaining the others. The members are the performers and, therefore, the entertainment duty is not payable by the performers, but by the viewers. In other words, the entertainment duty is payable by the third persons and not the p....
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....d Betting Tax Act, 1937 to contend that the petitioner is not liable to pay the duty. In the said judgment, playing of a video game on a machine by making payment according to time spent on the machine, was found to be an entertainment. The said judgment was relied upon by the learned appellate authority, to return a finding that the games/sports where the persons are ordinarily admitted on payment, is entertainment, liable to entertainment duty under the Act. It was found that the games/sports offered by the appellants are similar to the video games so far as the definition of "entertainment" is concerned and such games/sports are covered under the "entertainment " defined in the Act. It was also noticed that the appellants before the appellate authority have not paid any tax during the assessment years 1996-97, 1997-98, but paid tax at 20 per cent during the assessment year 1998-99. The appellate authority rejected the contention that duty at 20 per cent is to be deposited in pursuance of the decision in the office of the Deputy Excise and Taxation Commissioner dated July 30, 1998. It was found that there is no evidence of such unanimous decision or the approval by the then Prohi....
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....rfare, battle field, space warfare, sports and many other things which were likely to provide both education and entertainment to the viewers, particularly to young children. The mechanism for playing the machine was so designed that a coin of 50 naya paise was to be inserted into a strong box built within the machine, the keys of which were with the manufacturer. After the show was over a representative of the manufacturing company would come, open the box, collect the money and pay the share of the hirer-petitioner out of the sale proceeds. Though the honourable Supreme Court found that the part of video show was of some educational value, but as per the definition of "entertainment" which is almost in pari materia with the definition of "entertainment" in the Act, it was held that the show must pass the following tests to fall within the ambit of section 3 of the U.P. Entertainment and Betting Tax Act, 1937: "(1) that the show, performance, game or sport, etc., must contain a public colour in that the show should be open to public in a hall, theatre or any other place where members of the public are invited to attend the show. (2) that the show may provide any kind of amusemen....
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....ertainment can be bifurcated into two categories. The one is beyond any doubt, i.e., where the players or the artists are performing in front of the audience with a view to entertain them. Even a single person, if being entertained, would be liable to pay entertainment duty, which is required to be collected by the proprietors of the places, where such entertainment is being offered. It is the said concept, which we encounter every day in life. Watching movie in a cinema theatre on which the entertainment duty is charged as a part of the cost of the ticket or when a sporting activity is watched by way of entry ticket. Such activity of sport would also be an entertainment for the persons, who have gone to watch that sport on purchase of ticket on a price which is exclusive an entertainment duty. As per the judgment in Geeta Enterprises' case [1983] 4 SCC 202; AIR 1983 SC 1098, the playing of video game on a machine is an entertainment for the player although he is the sole viewer. Thus, following the judgment in Geeta Enterprises' case [1983] 4 SCC 202; AIR 1983 SC 1098, it can be said that even in the case of single viewer, a sport activity attracts entertainment duty. At ....
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....e judgment of the honourable Supreme Court in Geeta Enterprises' case [1983] 4 SCC 202; AIR 1983 SC 1098 as such games or sports are open to the members of public, though restricted to members, who have paid the subscription either in lump sum or on monthly or yearly basis. Such games provide amusement to the players and also satisfy test No. 4, laid down in the judgment of the honourable Supreme Court in Geeta Enterprises' case [1983] 4 SCC 202; AIR 1983 SC 1098, as the members are entertained by playing such games. Relying upon the honourable Supreme Court judgment in Geeta Enterprises' case [1983] 4 SCC 202; AIR 1983 SC 1098, we are of the opinion that the entertainment duty is payable by the petitioners on the various activities as detailed in the writ petitions as discussed above. At this stage, other arguments raised by the learned counsel for the petitioners are required to be examined. It is argued by the learned counsel for the petitioner that in the meeting of the Excise and Taxation Officers, it was decided to charge 20 per cent of entertainment duty, therefore, levy of entertainment duty at 125 per cent and 25 per cent from the date of notification, i.e., J....