Government can misuse Entertainment Duty Act

Throwing the spotlight backwards on the Shiv Sena-BJP government’s entertainment tax exemption to the 1996 Michael Jackson show, the Bombay high court observed that the blanket power given to government under the Entertainment Duty Act can be misused.    

A division bench of Justice DK Deshmukh and justice KK Tated was hearing a public interest litigation filed in 1996 by Mumbai Grahak Panchayat.

It came up for final hearing on Monday. The Panchayat challenged the government’s decision to grant 100% entertainment tax exemption to the concert organised by Shiv Udyog Sena (SUS) at the Andheri Sports Club on October 30 and November 1, 1996.  

The judges directed an issue of notice to the state advocate general seeking his assistance in review of section 6 (3) of the Entertainment Duty Act. It says the state may by a general or special order exempt any entertainment or class of entertainments from liability to entertainments duty subject to terms and conditions.

“It (section) is a blanket and drastic power to the government to give exemption to any concert. It is capable of being misused,” said Deshmukh.

The matter is adjourned to March 7.