Entertainment duty on Cinema Award function & Penalty –
The petitioner – company engaged in promoting Indian Cinema and Television – had organized APSARA award function on 21.1.2006 at J.B.Auditorium. It was organized in association with TV Channels.
On 29.12.2005, Reliance Communications informed the Respondents about its agreement with the petitioner for sponsorship for total monetary value of Rs.4.90 crores including sponsorship amount of Rs.2,87,50,000/-. However, no tickets were sold but only guild members were invited.
However, the flying squad visited the function and found banners of Reliance, other companies, corporates and their products. Dance was being performed to Hindi cinema tunes.
On 7.3.2006, the Additional Collector passed order for entertainment duty of Rs.71,87,500/- and fine of Rs.1,43,75,000/- (two times of the duty). In appeal, the penalty / fine was reduced to Rs.71,87,500/-.
HELD, while upholding entertainment duty, it was found that the issue raised by the petitioner is based on interpretation of various definitions of the Entertainment Duty Act as analysed in the judgment and therefore, one cannot say that the petitioner had any intention to evade the duty and was not under the bona fide belief that its award function is not covered by the said Act. The issue is purely on questions of law and it being a debatable issue certainly one cannot attribute any intention on the part of the petitioner to evade duty. Therefore, this is not a fit case where the fine / penalty ought to have been imposed on the petitioner.
Judgment dated 20.6.2024 of the Bombay High Court in Writ Petition No.2346 of 2007 of Film & Television Producers Guild of India Vs. State of Maharashtra and others
