The Delhi High Court on Thursday sought the Arvind Kejriwal-led AAP government’s response on the Delhi and District Cricket Association’s (DDCA’s) plea challenging the latest changes in Delhi’s entertainment tax laws.
The HC bench issued a notice to the AAP government, seeking its response to the DDCA’s plea seeking quashing of the amendements mande in the Delhi Entertainment and Betting Act. The amendments seek to levy tax on retrospective sponsorship and advertisement revenue right from 1998.
DDCA has argued in court that the changes made in the law are”unconstitutional and unreasonable”.
It said that as the cricketing body has already paid over Rs eight crore from 2009 onwards as entertainment tax and from 2000 to 2008, it was exempted from the Act. According to DDCA’s plea, the recent demand of over Rs 23 crore as entertainment tax by Delhi government was on the advertisement and sponsorship revenue earned during the period from 2003-2009 during which these were not chargeable.
DDCA has also sought setting aside of Delhi government’s assessment order of October 23, as per which it has to pay entertainment tax of over Rs 23 crore.
While issuing notice to the government, the court directed it not to take any coercive steps against DDCA and to not withhold the no-objection certificate for the upcoming India-South Africa test at Feroz Shah Kotla stadium here.
The court passed the order after DDCA agreed with the court’s direction to deposit Rs one crore with the Excise, Entertainment and Luxury Tax Department in two instalments of Rs 50 lakh each.
(with PTI inputs)