When the matter was last heard, the Court had expressed its disinclination to accept the proposition that such convenience provided by the cinema theatres when tickets are booked via digital means, would come under the head of entertainment tax.
When the matter was taken up today, Justice Nagarathna said that the charge was being levied for a service and cannot fall under the purview of entertainment tax.
“So instead of going directly to cinema theatre where I can get the ticket directly, I am buying it from my home, so that is the charge you are taking for your service. How will that come under entertainment tax? I am getting a ticket through luxury instead of going to talkies or theatres. Will this be under entertainment tax? This is extra convenience that is being provided to me. It has no link with the movie or entertainment part.”
However, the counsel for the Tax department argued that extra charges that are paid online is to watch the movie and should, therefore come under the head of entertainment tax.
However, the Court refused to accept the argument and dismissed the appeal.
“We are not inclined to interfere with the decision of Division Bench of Madras High Court. Dismissed,” the Court said.
Source: Barandbench
