SC imposes tax on all glamour shows

Dec 01: Upholding the Allahabad High court’s decision, the Supreme Court of India has directed to impose entertainment tax on all sorts of fashion and glamour shows quoting, “Fashion shows are pure entertainment and have no educational value” in an appeal filed by an organiser against the earlier decision of High Court.

A Bench comprising of Justice C K Thakker and Altamas Kabir pertain the Allahabad High Court’s decision in which Court had imposed 30 percent entertainment tax over the organiser of ‘Mr Gorakhpur’ and ‘Miss Gorakhpur’ Amit Kumar who had organised the show in July 09, 2000 at St Andrews Inter College and denied to pay tax.

The writing judge for the Bench, Justice Kabir said, “It is difficult to believe that the fashion show was held with the object of educating prospective students who would be interested in joining the institute Art, Fashion Designing and Modelling.” Though the organiser had not soled any tickets but issuing invitation cards was a deliberate attempt to avoid tax, added court.

Amit Kumar had organised a fashion show on the back of five sponsors for publicising the Institute of Art, Fashion Designing and Modelling by the Cambridge Inertia Group. The organiser had collected the total fund of Rs.1,62,500 from viewers and another Rs. 25,000 from five sponsors as observed by the present District Magistrate (DM). The DM had asked to pay the apt tax as per Section 11(3) of the Uttar Pradesh Entertainment and Betting Tax Act 1979.

According to this act “all glamour shows include fashion come under the entertainment sector and are liable to pay entertainment tax.”

Challenging the authority, Kumar had filed a petition in the district court, where court’s decision went in his favour. In response the UP government had appealed in the upper court thereby striking the 30 percent accredited tax of worth Rs. 43,270. The apex court has also imposed an additional fine of Rs. 20,000 for organising the event without giving prior notice to the district authority.

Arguing in the Apex court, Rameshwar Goyal, the organiser's counsel said, “the fashion show was organised to publicise the Institute and hence entertainment tax could not have been levied.”

However, court rejected his argument saying “The advertisement indicated that the object of the show was to invite people to come and watch the new world of glamour and modelling and to see the world of exotic fashion in Gorakhpur itself.”