SKY VISION T V Vs. STATE OF BIHAR

JUDGEMENT

(1.) ALL the petitioners are partners and/or proprietors of firms engaged in the trade of cable T.V. operation. Their field of activity is in the district of Dhanbad. The petitioners have installed Dish Antennas and are receiving programmes which are beemed through Satellite and through cables and other electronic gadgets. Then they distribute the programmes to the consumers through T.V. Sets. The petitioners are receiving programmes through Satellite systems viz., Insat 2 A. Asiaset and Arabset. From the above mentioned Satellites petitioners are receiving programmes from 14 channels. The petitioners can rely only 4/5 channels at a time through Receivers and/or distributors.

(2.) THE petitioners charge installation cost from the consumer for laying cables from the place where the Dish Antena is set up to the place where the Television sets of the consumers are set up. Initial cost varies depending upon the distance of the T.V. set from the location of the Dish Antennas of the petitioners. These charges include T.V. tuning, checking of wires, replacement of wires, amplifier system, Tap off and other electronic items. The petitioners have to employ various people as servicemen to manage the correct functioning of the entire system and for removing any defect in the Cable network or other electronic items and in lieu of these services provided by the petitioners, the petitioners levy a nominal service charge from the consumers.

(3.) IT appears that the Commissioner of Commercial Tax Patna issued a Circular dated 4.12.1992 to all Subordinate Commercial Tax Officers to the effect that having regard to the provisions contained in the Bihar Entertainment Tax Act 1948, Dish Antennas/Cable T.V. Operators who provide entertainment are liable to pay Entertainment Tax @ 110% under Section 3 of the Act. A direction was issued for realisation of the tax from the cable operators. The aforesaid circular was issued after obtaining the opinion of the Advocate General of Bihar. The Circular is annexed as Annexure 1 to the writ application.