EAST INDIA HOTELS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner is the owner of two hotels, the Oberoi and Oberoi Maidens. In both the hotels at the relevant stage of time discotheques were being run under the name and style of `Tabela' and `Sensation' respectively. The question raised in these two writ petitions is about the liability of the petitioner company to pay entertainment tax on the cover charges/fixed fee imposed in respect of the entry into the discotheques.

(2.) The entertainment tax is sought to be charged under the provisions of U.P. Entertainment and Betting Tax Act, 1937 (hereinafter referred to as the said Act) as extended to the then union territory of Delhi. The relevant provisions of the said Act are as under :

(3.) The petitioner claims that the purpose of running the discotheques was to provide a different menu and atmosphere as compared to the other restaurants and the hotels and the discotheques were mainly restaurants with a dance floor for any customer who may wish to dance to the recorded music. The claim thus made is that no kind of entertainment or amusement was provided in the restaurants either by way of live band, floor shows or cabaret. Thus there was no entertainment provided as defined under Section 2(3) of the said Act.