TaxTMI 
TaxTMI 
TaxTMI 
2017 (4) TMI 627
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....usical concert was conducted by popular singer and that the same was live musical night. It is the case on behalf of the petitioner that event organized by the petitioner being musical concert would be exempted from the application of the Act, 1977 in view of Section 3A r/w Schedule III of the Act, 1977. It is the case on behalf of the petitioner that however the respondent authority beyond the scope of their jurisdiction defined under the Act and in violation of provisions thereof, by impugned order had levied entertainment tax while subjecting the income generated through the sale of tickets of the musical concert. That being aggrieved and dissatisfied with the the imposition / levy of the entertainment tax of aforesaid musical concert and / or on the proceeds of the event/ musical concert organized by the petitioner, the petitioner has preferred by the present Special Civil Application under Article 226 of the Constitution of India. 3.0. Shri Mihir Thakore, learned Senior Advocate has appeared with Shri Viral K Shah, learned advocate for the petitioner and Shri Kamal Trivedi, learned Advocate General has appeared on behalf of the respondent State. 4.0. Shri Mihir Thakore, lear....
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....therefore, Golden Rule of interpretation is required to be applied. It is submitted that therefore, while interpreting Section 3A of the Act, literal meaning is required to be given, more particularly, when the language used in Section 3A is very clear. It is submitted that nothing is required to be added while interpreting and considering Section 3A of the Act, more particularly, when language is absolutely unambiguous and clear. In support of his above submission, Shri Thakore, learned counsel for the petitioner has relied upon the following decisions of the Hon'ble Supreme Court. 1.0. A.V.Fernandez vs. State of Keralla reported in AIR 1957 SC 657. 2.0. The Commissioner of Income Tax Bombay City vs. The Provident Investment Co. Ltd reported in AIR 1957 SC 664. 3.0. Central India Spinning & Waeving and Manufacturing Co Ltd vs. The Municipal Committee, Wardha reported in AIR 1958 SC 341. 4.0. Collector of Estate duty vs. M.S.R. Kanakasabai and Othes reported in AIR 1973 SC 1214. 5.0. Alladi venkateshwarlu And others vs. Government of A.P. And Another reported AIR 1978 SC 945. 6.0. Polester & Co. Ltd vs. Addl. Commissioner of Sales Tax reported in AIR 1978 SC 897. 7.0.....
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....haira, therefore, a proposal was made in the Budget Speech of the Hon'ble Finance Minister delivered in the Assembly on 30.06.1998, assuring that the aforesaid conventional activities and cultural performances would be exempted from payment of Entertainment tax, so as to avoid every time taking permission for exemption from payment of Entertainment Tax and it was proposed to place such exempted activities by way of specific provisions and it was proposed that detailed list containing such activities and programme will be in the form of Act pertaining to the Entertainment Tax. Shri Kamal Trivedi, learned Advocate General has strongly and heavily relied upon the speech delivered by the Hon'ble Finance Minister delivered on the floor of house while introducing Section 3A of the Act and Schedule III. 5.3. Strongly relying upon the Budget Speech of the Hon'ble Finance Minister, it is submitted that on bare perusal of the same, it suggests that the intention of the Legislature behind insertion of the provisions of section 3A along with the ScheduleIII in the Act is to see that the conventional activities and programmes are exempted from payment of Entertainment Tax, and definitely not t....
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....f the Act, the main purpose of the statute is for encouraging the amateur artistes engaged in musical nights on noncommercial basis and for encouraging noncommercial programs. It is submitted that was the precise reason for the State Government to issue the clarification dated 18.2.2016 wherein it was categorically explained that the purpose of giving exemption to such programmes was that the activities by amateur artistes engaged in noncommercial activities and programmes and purely conventional programmes get encouragement and support. 5.5. It is further submitted that even controversy in the present petition is also required to be viewed from another angle. It is submitted that as per Section 29 of the Act, the State Government may by notification in the official gazette exempt either wholly or partly, any entertainment or class of entertainments from payment of tax; (a) where such entertainment is provided for any educational, medical, charitable, philanthropic or such other purpose; or where the State Government considers it necessary so to do in the public interest. It is submitted that when such Section 34 was inserted, Section 29 of the Act was very much there and even the....
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.... that as per Section 3A of the Act as inserted subsequently, notwithstanding anything contained in Section 3, the entertainment tax on any payment for admission to entertainments specified in Schedule III is not leviable. It is the case on behalf of the petitioner that all kinds of musical programmes including musical nights and opera would fall under Schedule III and therefore, on any payment for admission of such musical nights, more particularly, on such musical concert organized by the petitioner the entertainment tax is not leviable. 8.0. On the other hand, it is the case on behalf of the State that relevant provisions of Entertainment Tax Act, more particularly, Section 3, 3A, 29 and Schedule III are required to be read together and harmoniously and legislative intent of insertion of Section 3A of the Act, which can be gathered from the Speech delivered by the Hon'ble Finance Minister made while proposing to insert Section 3A, also is required to be considered. Therefore, it is the case on behalf of the State that while inserting Section 3A of the Act, the legislative intent was not, not to levy the entertainment tax on all musical nights, opera etc. and it was only with....
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.... person. (b) every payment for admission of a motor vehicle into the auditorium of a cinema known as DriveinCinema, if such payment is separately charged by the proprietor for such admission, a tax at the rate of 25% of such payment (3) Where the payment for admission to an entertainment is made wholly or partly by means of lump sum paid as a subscription or contribution to any person, or for a season ticket or for the right of admission to a series of entertainments or to any entertainment during a certain period of time or for any privilege, right, facility or thing combined with the right of admission to any entertainment or involving such right of admission without further payment or at a reduced rate, the tax shall be levied on the amount of the lump sum but where the prescribed officer is of opinion that the payment of lump sum or any payment for a ticket, represents payment for other privileges, rights or purposes besides the admission to an entertainment the tax shall be levied on such an amount as appears to the prescribed officer to represent the right of admission to the entertainment in respect of which the tax is payable. [(4) Save as otherwise provided in this A....
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.... purpose only Section 3A was inserted. Thus, legislative intent as a whole by inserting Section 3A seems to be to grant exemption from payment of entertainment tax on such activities i.e. music, dance, drama, circus, magic shows, puppet show and Mushaira with a view to encourage such activities, cultural activities and sports activities. In view of statement of objects and reasons of the Amendment Act, 1998, the State Government with a view to give effect to the proposal contained in the Budget Speech of the Finance Minister in the Assembly on the 30th June, 1998, Section 3A came to be inserted. Thus, even the statement of objects and reasons of Amendment Act, 1998 was to give effect to the proposal contained in Budget Speech of the Finance Minister. Thus, the legislative intent seems to be to grant exemption to encourage activities, cultural activities and sports activities i.e. music, dance, drama, circus, magic shows, puppet show and Mushaira and the legislative intent was not, to grant exemption on all such activities whether performed on commercial basis or not. The legislative intent seems to be not to give exemption to such activities carried on for commercial purpose. The l....
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....dmissible for the purpose of interpreting the statutory provision but the speech made by the Mover of the Bill explaining the reason for the introduction of the Bill can certainly be referred to for the purpose of ascertaining the mischief sought to be remedied by the legislation and the object and purpose for which the legislation is enacted. This is in accord with the recent trend in juristic thought not only in Western countries but also in India that interpretation of a statute being an exercise in the ascertainment of meaning, everything which is logically relevant should be admissible. In fact there are at least three decisions of this Court, one in Loka Shikshana Trust v. Commissioner of IncomeTax [1975] 101 ITR 234(SC) the other in Indian Chamber of Commerce v. Commissioner of Incometax [1975] 101 ITR 796(SC) and the third in Additional Commissioner of Incometax v. Surat Art Silk Cloth Manufacturers Association [1980] 121 ITR 1(SC) where the speech made by the Finance Minister while introducing the exclusionary clause in Section 2 Clause (15) of the Act was relied upon by the Court for the purpose of ascertaining what was the reason for introducing that clause. The speech m....
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....pparent from the Speech of the Finance Minister while introducing Amendment Act, 1998 i.e. Section 3A and the Schedule that the same was enacted in furtherance of the policy of the Government to encourage cultural and sports activities i.e. music, dance, drama, circus, magic shows, puppet show and Mushaira and for organizing such activities, the organizers were required to take permission for exemption and therefore, it was proposed to exempt such activities and programmes to put in the form of schedule in the Act.. Thus, the exemption from payment of entertainment tax of such activities i.e. music, dance, drama, circus, magic shows, puppet show and Mushaira was to encourage cultural activities and sports activities and such exemption does not seem to be provided for such programmes involving commercial element. 9.7. Therefore, considering the legislative intent of providing separate schedule having such activities which is curled out and / or it can be gathered from the budget speech of the Finance Minister and the object and purpose of Amendment Act, 1998 and Section 3, 3A and schedule are read together with Section 29 r/w budget speech of the Hon'ble Finance Minister there ....