The Hindu : National : Fashion shows attract entertainment tax: court

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Monday, Dec 03, 2007
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Fashion shows attract entertainment tax: court

Legal Correspondent

Rejects contention that such programmes are of competitive nature
“Difficult to believe that object was to educate students”

New Delhi: The Supreme Court has held that organisers of fashion shows or beauty contests are liable to pay entertainment tax even if such events are held as charity shows.

A Bench of Justices C.K. Thakker and Altamas Kabir rejected the contention that such programmes were of competitive nature, and there was no element of entertainment involved. It did not agree with the submission that as there were no cultural, music and dance programmes associated with such programmes, no entertainment tax could be levied.

In the instant case, a fashion show was held at Gorakhpur in Uttar Pradesh on July 9, 2000 where “Mr and Miss Gorakhpur” were selected. Since entertainment tax was not paid, the District Magistrate assessed the tax at Rs. 43,270 and Rs. 20,000 by way of penalty to be paid by the organisers.

Accordingly a show-cause notice was issued to one Amit Kumar.

In his reply, Mr. Kumar contended that the event was organised as a charity show with the specific purpose of publicising the event and no entry fee was collected. As the reply was not accepted, he challenged the notice and the Allahabad High Court dismissed his writ petition. The present appeal is directed against that order.

The apex court pointed out that the fashion show was held with the full knowledge that entertainment tax was payable in respect thereof. Though tickets might not have been issued and only invitation cards were issued, the same was merely a subterfuge for the purpose of evading and/or avoiding payment of entertainment tax.

Writing the judgment, Mr. Justice Kabir said it was difficult to believe that the fashion show was held with the object of educating prospective students, who would be interested in joining the institute of art and fashion and hence exempt from payment of entertainment tax.

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