Entertainment Tax can be levied only on future IPL matches says Mumbai High Court
RECENTLY, Mumbai High Court disposed of a Public Interest Litigation challenging the Maharashtra Government's grant of exemption from levy of entertainment tax on IPL matches held last summer (March/April 2010). The Court was also seized of the matter regarding the propriety of a Union Minister holding positions in a sports organization and conflict with the Code of Conduct for Ministers.
The High Court, based on the decision of the State Government in withdrawing the exemption earlier granted to sports activities way back in 1964 and its decision to levy entertainment tax on future IPL matches, held that the State Government cannot be directed to collect any tax retrospectively.
As regards Code of Conduct for Ministers and their role in sports organizations, the High Court observed that this is an issue which should be best left to the wisdom of the concerned authority who is in charge of framing and regulating such Code of Conduct. The High Court further observed that Ministers being ‘Trustees' of the people of this Country, they should recuse/preclude from taking any decisions which are in conflict with the interest of the people.
For more on this interesting PIL, see ‘Breaking News'.