The Bombay High Court has held that the entertainment duty cannot be levied on Billiard Tables as the services are exclusively provided to the Members of the Club.
The division bench comprising Justice K. R. Shriram & Justice Milind N. Jadhav was considering a bunch of petitions where the petitioners, including Bombay Presidency Golf Club Limited and Anr, challenged the demand of entertainment duty on billiard tables. The petitioner has also challenged action taken for water sports activity because of the swimming pool on the club premises. This petition be de-tagged and listed on 21st July 2022 for hearing.
It was contended that the facilities of NSCI are available only to the members of NSCI and to the guests of those members, if accompanied by the members. In other words, it is not open to the general public. As part of the various privileges, NSCI had installed five billiard tables at the club premises available to be used by its members on a first come first basis on a nominal charge of Rs.7/- per frame. Mr. Dave states that this charge also had to be fixed otherwise the facility could be misused and to partly recover the cost of repairs and maintenance to the tables, replacement of the cues and the balls.
The division bench noted that the facts are identical to the facts in the case of Gondwana Club Vs. State of Maharashtra and Ors wherein it was held that the members of the club mutually provide the facilities to be used exclusively by themselves and the same are not made available to the general public, even on payment. And therefore, the action of the Entertainment Tax Inspector of initiating proceedings against the petitioner-club for payment of entertainment duty is bad in law.
“Though Mr. Patki tried to defend the action of respondents, in fairness agreed to query posed by the court, that the law as laid down by the Nagpur Bench of this Court in Gondwana Club will squarely apply to these petitions as well,” the bench said.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to TaxscanAdFree. Follow us on Telegram for quick updates.
