HINDALCO INDUSTRIES LIMITED Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) Petitioner No. 1, Hindalco Industries Ltd. and petitioner No. 2, one of its shareholders, have filed this writ petition with a prayer that a writ of certiorari be issued and the impugned order, Annexure- '15' dated 3-2-1995, may be quashed.

(2.) The brief facts, leading to the petition, that Hindalco Industries Ltd. (hereinafter called as Hindalco) has its factory at Renukoot district Sonbhadra. The factory has a residential colony for its workers and employees which provides residential accommodation to them on a nominal licence fee. The house are equipped with amenities; like water and electricity etc. Hindalco also extends to its employee at their residential accommodations a Cable Net Work for viewing television programme and for that purpose it has installed a dish-antenna and other necessary equipments. The dish-antenna has been installed after getting licence, Annexure- '1' which has been renewed, vide Annexure-s '2' and '3'. The Cable Net Work is also registered with the Post Master in accordance with the Cable Television Net Work (Regulations Ordnance of 1994). The Hindalco has given contract to Shaym Communication System, New Delhi to maintain the said Cable Television Net Work. The terms and conditions of the agreement entered into between Hindalco and Shyam Communication System are contained in Annexure- '6'. Hindalco charges a nominal amount of Rs. 5.00 from its employees towards the maintenance charges of the aforesaid Cable Television Net Work, though the actual expenditure incurred by Hindalco for its establishment and maintenance is much more.

(3.) On 21/12/1993 the District Magistrate, Sonbhadra vide Annexure- '7' imposed Rs. 9280.00 as entertainment tax for the Cable Television Net Work for December, 1993. Hindalco sent letter, Annexure- '8' to the District Magistrate on 24/12/1993 praying for time for making submission that the entertainment tax was not chargeable from it. The Senior Entertainment Tax Inspector, vide Annexure- '9' informed Hindalco that three weeks time has been granted to it for showing cause. On 8/01/1994 Hindalco submitted Annexure- '10' contending that no entertainment tax is payable by it under the provisions of U.P. Entertainment and Betting Tax Act of 1979 (hereinafter called the Act). This contention was rejected by the District Magistrate, Sonbhadra on 17-9-1994 vide Annexure- '11' and Hindalco was informed that it is liable to pay entertainment tax to the tune of Rs. 83,520.00 up to August, 1994. Another application, Annexure- '12' was moved by Hindalco for giving one more opportunity to show cause. The A.D.M. (Finance and Revenue), Sonbhadra granted time to Hindalco vide Annexure- '13' dated 2-11-1994. A detailed objection was filed by Hindalco on 28-11-1994 which is Annexure- '14' and the objection raised were rejected by the impugned order, Annexure- '15' dated 3-2-1995. Hindalco was called upon to pay Rs. 1,29,920.00 up to January, 1995. This amount was to be paid within seven days. Under these circumstances, Hindalco has filed the present writ petition.