Having concerns over the issues on entertainment tax which has been subsumed into the Goods and Services Tax (GST), the PVR group has filed an appeal before the Allahabad High Court.
Before the High Court, the petitioners contended that Uttar Pradesh government had earlier, promised to allow multiplexes and cine malls retain a portion of entertainment tax for five years, on the basis of investments they make. However, this has been broken after the tax was subsumed into GST.
After admitting the petition on file, the High Court issued a notice to the state Government asking it to explain its scheme of entertainment tax.
The firm has challenged the new tax on the principle of promissory estoppels, which is a legal principle that says a promise is enforceable by law even if made without formal consideration.
