 Chandigarh: Punjab and Haryana High Court made it clear that state legislature is competent to impose duty/tax on entertainments and amusements, which include sports.
A full bench, comprising Chief Justice Mukul Mudgal, Justices MM Kumar and Jasbir Singh, passed the orders after hearing various petitions filed by Gurgaon-based DLF Golf Resorts Limited, including 11 golf clubs of Haryana, against the levy of entertainment duty on golf clubs patronized by them.
The petitioners had challenged the imposition of entertainment tax on golf clubs by the state governments from 2003-04 to 2007-08. Their counsel, senior advocate Soli Sorabjee had contended that the state legislature completely lacks legislative competence to tax 'sports' because taxing entry 62 of the state list of Seventh Schedule of the Constitution does not expressly include the ?sports? subject.
Sorabjee added that amusement and entertainment require viewers, who would be entertained, and such a situation would arise if members play a match to which general public is invited to watch on payment.
Another senior counsel for the petitioners, Arvind K Nigam, pleaded that the activities of members, who play golf are not exposed to public exhibition to entertain others. He insisted that if the imposition of tax on golf clubs by the state is accepted, it would lead to ridiculous consequences.
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