HC directs state to unlock services in state, asks company to pay tax due
Tata Sky Limited has moved the Punjab and Haryana High Court, crying foul over the imposition of entertainment tax by the Punjab government.
The High Court has directed the state to unlock the services, which were allegedly blocked on June 10. However, the relief is subject to the deposit of entertainment tax demanded by the state on account of Direct to Home (DTH) services provided by the company.
A petition was filed today by Tata Sky Limited against the State of Punjab and Secretary, Excise and Taxation Commissioner, Punjab.
The petitioner has demanded declaration of provisions of various sections of Entertainment Duty Act as amended by Punjab this year. The petitioner sought directions for not levying any duty under the Act on the DTH services and not to take any coercive action against the company. The company also demanded that during the pendency of the petition, interim orders may be passed to restrain the state from levying any entertainment tax or duty or interest or penalty on the DTH broadcasting services.
The company had also sought directions to immediately unlock the TIN number (services) of the company. The petitioner argued that the DTH service had been brought within the ambit of entertainment tax.
The amended Punjab Entertainment Duty (Amendment) Act, 2010, came into force on April 1.
In a telephonic communication, on June 9, with the Assistant Commissioner, Commercial Taxes Department of the State of Punjab and Haryana, the petitioner was informed that a meeting of all the DTH service providers had been called.
The company was allegedly threatened of coercive action, if it failed to pay the entertainment tax by June 10.
The company submitted a letter to the Assistant Commissioner clarifying that the corporate office of the company was situated in Mumbai and that they had received verbal intimation of the meeting called on June 9 at 11 am, making it difficult for them to attend it. The company also demanded written copies of the amendment and orders levying entertainment tax on the DTH services. The company had been directed to pay 10 per cent of its earnings.
The company further alleged that the Punjab State refused to entertain the request of the company and locked the services of the company hugely affecting its business. Terming the orders as “unconstitutional, unlawful, illegal and arbitrary”, the company has submitted that neither it was never issued a show cause notice nor it was given an opportunity to clear its stand. The company has submitted that imposition of entertainment tax on it would mean double taxation as it already is paying a big amount on account of duty on its broadcasting services.
Tata Sky moves court against imposition of entertainment tax
Tata Sky Limited has moved the Punjab and Haryana High Court, crying foul over the imposition of entertainment tax by the Punjab government.
The High Court has directed the state to unlock the services, which were allegedly blocked on June 10. However, the relief is subject to the deposit of entertainment tax demanded by the state on account of Direct to Home (DTH) services provided by the company.
A petition was filed today by Tata Sky Limited against the State of Punjab and Secretary, Excise and Taxation Commissioner, Punjab.
The petitioner has demanded declaration of provisions of various sections of Entertainment Duty Act as amended by Punjab this year. The petitioner sought directions for not levying any duty under the Act on the DTH services and not to take any coercive action against the company. The company also demanded that during the pendency of the petition, interim orders may be passed to restrain the state from levying any entertainment tax or duty or interest or penalty on the DTH broadcasting services.
The company had also sought directions to immediately unlock the TIN number (services) of the company. The petitioner argued that the DTH service had been brought within the ambit of entertainment tax.
The amended Punjab Entertainment Duty (Amendment) Act, 2010, came into force on April 1.
In a telephonic communication, on June 9, with the Assistant Commissioner, Commercial Taxes Department of the State of Punjab and Haryana, the petitioner was informed that a meeting of all the DTH service providers had been called.
The company was allegedly threatened of coercive action, if it failed to pay the entertainment tax by June 10.
The company submitted a letter to the Assistant Commissioner clarifying that the corporate office of the company was situated in Mumbai and that they had received verbal intimation of the meeting called on June 9 at 11 am, making it difficult for them to attend it. The company also demanded written copies of the amendment and orders levying entertainment tax on the DTH services. The company had been directed to pay 10 per cent of its earnings.
The company further alleged that the Punjab State refused to entertain the request of the company and locked the services of the company hugely affecting its business. Terming the orders as “unconstitutional, unlawful, illegal and arbitrary”, the company has submitted that neither it was never issued a show cause notice nor it was given an opportunity to clear its stand. The company has submitted that imposition of entertainment tax on it would mean double taxation as it already is paying a big amount on account of duty on its broadcasting services.
Tata Sky moves court against imposition of entertainment tax
