1995 (11) TMI 442

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....g licence, Annexure '1' which has been renewed, vide Annexures '2' & '3'. The Cable Net Work is also registered with the Post Master in accordance with the Cable Television Net Work (Regulations Ordnance of 1994). The Hindalco has given contract to Shaym Communication System, New Delhi to maintain the said Cable Television Net Work. The terms and conditions of the agreement entered into between Hindalco and Shyam Communication System are contained in Annexure '6'. Hindalco charges a nominal amount of Rs. 5/- from its employees towards the maintenance charges of the aforesaid Cable Television Net Work, though the actual expenditure incurred by Hindalco for its establishment and maintenance is much more. 3. On 21st December, 1993 the District Magistrate, Sonbhadra vide Annexure '7' imposed Rs. 9280/- as entertainment tax for the Cable Television Net Work for December, 1993. Hindalco sent letter, Annexure '8' to the District Magistrate on 24th December, 1993 praying for time for making submission that the entertainment tax was not chargeable from it. The Senior Entertainment Tax Inspector, vide Annexure '9' informed Hindalco t....

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....ding exhibition of news-reels, documentaries, cartoons, advertisement shots or slides, whether before, or during the exhibition of a feature film or separately; Section 2(1) (i) Any payment for seats or other accommodation in any form in a place of entertainment; (ii) ..... (iii) Any payment made for the loan or use of any instrument or contrivance which enables a person to get a normal or better view or hearing or enjoyment of the entertainment, which without the aid to such instrument or contrivance such person would not get; (iv) Any payment, by whatever name called for any purpose whatsoever, connected with an entertainment, which a person is required to make in any form as a condition of in addition to the payment, if any, for admission to the entertainment or without any such payment for admission. (v) ..... 7. The contention on behalf of the petitioner is that in the absence of admission to any place in which entertainment is held, no tax can be levied. T.V. Cable Operators neither provides any place nor charge any money for granting admission to any place. Similarly, the subscriber neither comes nor seeks admission or entrance to any place provided by t....

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....s argued that the provision of the facility is in fact a welfare measure which does not depend on the volition of the employee and every residential unit in the township is provided with this facility without there being any application or request on the part of the employee. It is argued that only a token sum of Rs. 5/-p.m. is being charged by the Hindalco from its employees for the maintenance of the Cable Net Work and that the actual amount paid by Hindalco to M/s. Shyam Communication System is much more. In support of this contention the learned counsel for the petitioners has relied upon the agreement entered into by Hindalco with Shyam Communication System which is Annexure 6. Along with the supplementary affidavit, a photostat copy of the Standing Order applicable to the Company has also been produced. 14. Learned counsel for the petitioner has relied on the case of Tata Engineering & Locomotive Company Ltd. v. Sales Tax Officer, AIR 1979 SC 343. Another authority cited by the learned counsel is 1995 HVD (2) 152, ITI Ltd. Allahabad v. Passenger Tax Officer, Allahabad which was decided by a Bench of which one of us (Hon'ble R.A. Sharma, J.) was a member. The above case....

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....n adjudicated upon by the District Magistrate, Tax has been levied on Hindalco on the basis that it has given 8000 connections to its employees. This figures of 8000 connections is based on Annexure 'CA-2' which recites that at the time of inspection of the premises one Deepak Panera son of M.D. Panera told the Inspecting Officer that there are 8000 connections. This inspection took place on 14-7-1993. The petitioners have filed rejoinder affidavit in paragraph 13 of which it is categorically stated that there is and there was no employee in the petitioner's Company by the name of Deepak Panera at any time. The learned Standing Counsel has argued that Deepak Panera may not be an employee of Hindalco but he appears to be a representative of Shyam Communication System which was running the Cable Television Net Work on behalf of Hindalco and, therefore, notice to Deepak Panera, Annexure C.A. -- is sufficient and Hindalco is bound by the statement made by Deepak Panera to the effect that there are 8000 connections. 18. We have given careful consideration to this aspect of the matter and in our opinion, under the facts and circumstances of the case, any notice to Deepak P....