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The Jharkhand High Court has dismissed petitions filed by five direct-to-home (DTH) operators and upheld the state government’s authority to levy entertainment tax.
The HC in its order stated that the state government’s levying of the Jharkhand Entertainment Tax Act, 2012 on DTH operators is in accordance with Entry 62 of List II of the Seventh Schedule.
The levy of ‘entertainment tax’ is different from the levy of tax on ‘broadcasting service’ which falls under Entry 92C of List I of the Seventh Schedule of the Constitution of India.
Five DTH operators, Dish TV, Tata Sky, Bharti Airtel, Videocon d2h and Reliance Digital TV had sought quashing of the notification whereby Jharkhand Entertainment Tax Act, 2012 was implemented with retrospective effect from 27 April 2012, contending that it was in violation of the constitution.
The DTH operators had contended that DTH broadcasting services were covered under Entry 92C of the Union List and the levy of entertainment tax under Entry 62 of the State List is an encroachment upon the Union Government’s authority.
However, the Jharkhand HC in its order stated that the Entry 62 of State List and Entry 92C of the Union List operate in two different spheres.
“There is no transgression or encroachment upon the field of Union Legislation and the levy of tax on entertainment through DTH by the State Legislature is not ultra vires,” the HC said in its order.
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The HC in its order stated that the state government’s levying of the Jharkhand Entertainment Tax Act, 2012 on DTH operators is in accordance with Entry 62 of List II of the Seventh Schedule.
The levy of ‘entertainment tax’ is different from the levy of tax on ‘broadcasting service’ which falls under Entry 92C of List I of the Seventh Schedule of the Constitution of India.
Five DTH operators, Dish TV, Tata Sky, Bharti Airtel, Videocon d2h and Reliance Digital TV had sought quashing of the notification whereby Jharkhand Entertainment Tax Act, 2012 was implemented with retrospective effect from 27 April 2012, contending that it was in violation of the constitution.
The DTH operators had contended that DTH broadcasting services were covered under Entry 92C of the Union List and the levy of entertainment tax under Entry 62 of the State List is an encroachment upon the Union Government’s authority.
However, the Jharkhand HC in its order stated that the Entry 62 of State List and Entry 92C of the Union List operate in two different spheres.
“There is no transgression or encroachment upon the field of Union Legislation and the levy of tax on entertainment through DTH by the State Legislature is not ultra vires,” the HC said in its order.
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