TaxTMI 
TaxTMI 
TaxTMI 
1982 (4) TMI 289
X X X X Extracts X X X X
X X X X Extracts X X X X
....flexes so as to beat the computer-mind, the human mind scores a point over the computer-mind and the player enjoys the thrill of having succeeded in scoring a point. That entitles the player to a second round till he loses to the computer mind in the combat. In other words, it depends on the intelligence and sharp reflexes of the player who operates the machine to score a point over the computer mind. The petitioners contend that the amount dropped in the slot is by way of hire charges for using the machine. No payment is charged from the player or the onlookers for entry to the parlour. 2. The petitioners who are the proprietors of such parlours were served with show cause notices directing them to submit accounts for payment of entertainment tax on the income received from the coins dropped in the slots of the video machines in exercise of power conferred by Section 3 of the Gujarat Entertainments Tax Act, 1977, (hereinafter referred to as 'the Act') On receipt of these notices the petitioners showed cause pointing put (hat income from video machines installed in their parlours could not attract the provisions of Section 3 of the Act because no payment was charged for ad....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat it was an Act to impose a duty in respect of admission to entertainments in the State of Bombay. The preamble to our Act shows that it is an Act to consolidate and amend the law relating to the imposition of a tax on entertainments in the State of Gujarat. The relevant entries in List II of the Seventh Schedule to the Constitution are Entry 33 and Entry 62. Entry 33 deals with theatres and dramatic performances; cinemas subject to the provisions of Entry 60 of List 1; sports, entertainments and amusements. Entry 62 deals with taxes on luxuries, including taxes on entertainments, amusements, betting and gambling. The expressions "entertainment", "admission to an entertainment" and "payment for admission" have been defined as under by Section 2 of the Act: 2(e) 'entertainment' includes any exhibition, performance, amusement, game or sport to which persons are admitted for payment; 2(a) 'admission to an entertainment' includes admission to any place in which the entertainment is held: 2(g) 'payment for admission' includes: (i) any payment made by a person who, having been admitted to one part of a place of entertainment....
X X X X Extracts X X X X
X X X X Extracts X X X X
....an a person who has to perform any duty in connection with such entertainment shall be admitted to any entertainment. 5. While considering the scheme of the Bombay Entertainments Duty Act, 1923, which held the field before our Act came into force, a Division Bench of this Court in Liberty Talkies v. State (1967) 8 G.L.R. 609 at 613 observed that Section 3 which is the charging section provides for the levy of entertainment duty on 'all payments for admission' to an entertainment and the word 'all' preceding the words 'payments for admission' is an all embracing word intended to bring within the scope and ambit of the words it governs, all that can possibly be included in them. Raising the question: what is included within the connotation of the expression 'payment for admission'? The Division Bench pointed out that the said expression as defined in Section 2(b) is an inclusive definition but that does not mean that the inclusive clause prevents the expression receiving its ordinary popular and natural meaning wherever properly so applicable. Now, it will be seen that the definitions given in Sections 2(a), 2(e) and 2(g) of the Act are inclusive defi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er in paragraph 6 of its judgment: The natural import of the term 'entertainment' is amusement and gratification of some sort. The term connotes something in the nature of an organized entertainment. 6. Having ascertained the natural import of the term 'entertainment', we may now proceed to consider the relevant provisions of the Act referred to earlier. Now the expression 'entertainment' includes any exhibition, performance, amusement, game or sport to which persons are admitted for payment. The expression 'admission to an entertainment' includes admission to any place in which entertainment is "held. If we read the definitions in Sections 2(a) and 2(e) together, it becomes clear that "admission to an entertainment" means admission to any place in which any exhibition, performance, amusement, game or sport is held. It clearly contemplates entry to a place where some game is played. "Payment for admission" means payment to be made for admission to a place of entertainment, that is, a place where some exhibition, performance, amusement, game or sport is held or any payment made in connection with an entertainment which a per....
X X X X Extracts X X X X
X X X X Extracts X X X X
....; 2/- was later adjusted towards the price of the fabric purchased by the customer visiting the dome. In order to attract a larger number of visitors and to promote the sales of their fabrics, the petitioners used to arrange every evening a display of fabrics by mannequins who used to wear and show off series, costumes, dresses, etc. made from fabrics manufactured by the petitioners. This display was visible to even persons who stood outside the dome apart from its being unrestricted to customers inside the dome. The question which came up for consideration was, whether entertainment duty could be levied on the sums collected by way of tokens under Section 3(1) of the C.P. and Barer Entertainments Duty Act, 1936 which defines the expressions 'entertainment', 'admission to entertainment', 'payment for admission' and 'proprietor' in the same language in which they have been defined in our Act. The learned Judges constituting the Division Bench after referring to the definitions of the aforesaid expression made the observations, which we have referred to earlier namely: The natural import of the term 'entertainment' is amusement and gratificati....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tertainment' in the various books referred to above, and having regard to the preamble of the Act, we have no hesitation in coming to the conclusion that to bring an exhibition into the definition of 'entertainment,' a continuous process of performance may not be necessary but it is essential that the exhibition should be displayed with a view to provide amusement or gratification of any kind to the visitors and the fact that some persons might derive subjective gratification from exhibition, though not arranged for that purpose, is not relevant. 10. The Supreme Court in Markand Saroop v. M.M. Bajqj had an occasion to deal with similar expressions used in the U.P. Entertainment and Betting Tax Act, 1937. That was a case in which a restaurant was holding cabaret performances every evening. The minimum charges for eatables at the time of cabaret were ₹ 5/- at evening tea, and ₹ 10 at dinner time from 10.00 P.M. onwards. These amounts were adjusted towards the eatables that were consumed. The price of eatables were not raised for the purpose of covering the entertainment, but whether a person consumed anything or not, he had to pay ₹ 5/- for the evening ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....may feel thrilled and entertained should he be able to score a point by his sharp reflexes and mental prowess over the electronic mind of the machine. By merely inserting two 50 paise coins in the Video machine he is not going to feel thrilled or entertained. The proprietor of the parlour is not putting up any show or performance, admission to which is permissible on payment of a fixed amount. In the instant cases admittedly admission to the parlour is unrestricted and free and nothing is charged for staying in the parlour while some player is operating the Video game machine. The machine remains dumb even after the insertion of the coins till it is activated by the player by operating the lever on the push buttons meant for the purpose of playing the game offered by the machine. Obviously, therefore, there is no payment fur admission to an entertainment because none is offered by the proprietors of the parlours. However, a person who operates the machine does feel thrilled and entertained if he secures a point and succeeds in securing a second chance to play the game without being required to insert coins once again in the slot of the machine. The number of chances which a player ....