STATE OF MAHARASHTRA Vs. PAN INDIA PARYATAN LIMITED

JUDGEMENT

(1.) The challenge in the present appeals is to an order passed by the Division Bench of the High Court of Judicature at Bombay on 19th December, 2006 whereby Sections 3(1)(b), 3(2) and sub- sections 5(a) and (b) of the Bombay Entertainments Duty Act, 1923, for short, 'Act' were interpreted to hold that the rate of tax payable by the respondents for short, 'writ petitioners' would be as follows:

(2.) The writ petitioners own and run an amusement park within limits of Greater Bombay which was opened to the public for admission on 25th December, 1989. They charged a lumpsum amount for admission and entertainment to the amusement park. In terms of the Act, the writ petitioners were required to pay entertainment duty.

(3.) In the writ petition before the High Court, the assertion of the writ petitioners was that on 4th October, 1994, it sought confirmation that entertainment tax to be levied would be 3.75% of the value of a consolidated ticket. Such stand was accepted by appellant No. 2- The Collector, Bombay Suburban District. Later, vide communication dated 7th January, 1995, the writ petitioners were informed that they would be required to pay duty @7.5% and not @3.75%. The writ petitioners challenged such demand by way of writ petition. The said writ petition was withdrawn with liberty to file a fresh petition.