LexSTATE OF WEST BENGAL AND ORS. versus PURVI COMMUNICATION PVT. LTD. AND ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
A
ST ATE OF WEST BENGAL AND ORS.
v.
PURVI COMMUNICATION PVT. LTD. AND ORS.
B
MARCH I 6, 2005
[S.N. VARIA VA, DR. AR. LAKSHMANAN AND S.H. KAPADIA, JJ.]
West Bengal Entertainment-cum-Amusement Tax Act, 1982 with
C amendments; Section 4(A)(4a)(ii)/Cable Television Networks (Regulations) Act,
1955/Constitution of India, 1950, Article 286; Entry 62 of List-fl of Seventh
Schedule:
Transmission of T. V. Signals by Multi System Cable Operator to sub-
D cable Operators against a price-Levy of entertainment tax-Constitutionality
of-Dismissed by Taxation Tribunal-Allowed by High Court holding that
Section 4(A)(4a)(ii) of 1982 Act is ultra vires the Constitution-On appeal,
Held : Cable Operator transmits signals to sub-cable operators under a
franchise agreement-No entertainment to viewers/subscribers could be
provided unless signals are transmitted by the Cable Operator-Thus, not
E only sub-cable operators but also the Cable Operator have direct and proximate
nexus with the entertainments presented to the viewers-Hence, levy of
entertainment tax on cable operator/sub-cable Operators is within the
competence of the State Legislature under Ent1y 62 of List fl of the Seventh
Schedule of the Constitution-Since charging Section 4(A)(4a)(ii) is very clear
F and unambiguous, levying of the tax not violative of fimdamental rights as
guaranteed under Article 19(/)(g) of the Constitution-Bengal Amusement
Act, 1922-West Bengal Entertainment and Luxuries (Hotel and Restaurant)
Act, 1972.
Cable Television Networks (Regulatio11) Act vis-a-vis 1982 Act-
G Taxation-Overlapping of-Held: No overlapping since power of regulation
under the Central enactment is separate and distinctive from the power of
taxation by the State Legislature under Entry 62 of List-11 of the Constitution-
Though both the Statutes apply to levy of on amusement/entertainment tax but
areas of application of the two Acts are d{fferent.
H
954
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STATE v. PURVICOMMUNICATION PVT. LTD.
955
Words and Phrases :
'Cable Operator', 'Sub-cable Operator', 'Cable Service', 'Cable
Television Network', 'subscriber' and 'gross receipt '-Meaning of
The questions which arose for determination in this appeal were as
A
to whether Clause (ii) of sub-section (4a) of Section 4A of the West Bengal B
Entertainment-cum-Amusement Tax, 1982 (as amended by the West
Bengal Finance Act, 1998) is beyond the legislative competence of the St'ate
Legislature and as to whether respondent No. 1-Muiti-system Operator
and respondent No. 2-Sub Cable operator would come within the purview
of Clause (ii) of sub-section (4a) of Section 4A of the Act as they are the
persons who exhibit such performance through cable Television Network C
through the sub-Cable Operators.
Allowing the appeals, the Court
HELD : I. Respondent No. 1 engaged in receiving and providing
TV signals to individual cable operators is liable to pay the entertainment D
tax under sub-section (4a) of Section 4A of the West Bengal Entertainmeht-
cum-Amusement Tax Act, 1982. (973-B)
2.1. The Cable Television Networks (Regulation) Act, 1995, a central
legislation has been enacted to regulate the operation of cable television
networks in the country and for matters connected therewith. This E
enactment does not fetter the legislative power or competence of the State
to levy tax on luxuries including taxes on entertainments, amusements,
betting and gambling falling under Entry 61 of List II of Seventh Schedule
to the Constitution. The power of regulation or control under the centtal
enactment is separate and distinct from the power of taxation by the State
legislature under Entry 62 of List II being a specific power, the power of F
taxation cannot be cut down or fettered by the general power or reguiati(m
as exercised by the Parliament in enacting the 1995 Act. Under the
Legislative field exclusively reserved for the State Legislature, the levy of
tax by more than one statute on different taxable objects and taxable
persons is not prohibited by the Constitution of India. (973-E-F-G)
G
· 2.2. The Bengal Amusement Act, 1922 and the West Bengal
Entertainment and Luxurious (Hostel and Restaurants) Act, 1972 are two
statutes which have been enacted under the same legislature field i.e. Entry
62 of List II of Seventh Schedule to the Constitution of India, and the two
statutes apply to levy of tax on amusements, entertainments and luxuries H
956
SUPREME COURT REPORTS
(2005] 2 S.C.R.
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