- (1.) This batch of revision petitions filed under the Rajasthan VAT Act, 2003 by the assessee M/s Sky Media Pvt. Ltd., who is a 'Multi System Operator' (MSO) aggrieved by the order of the Tax Board dated 4/5/2012 deciding a batch of appeals filed by the Revenue and while allowing such appeals of the Revenue, the matters were remanded back to the Assessing Authority for decision afresh in accordance with the amended provisions of the Rajasthan Entertainments & Advertisements Tax Act, 1957 (hereinafter referred to as 'the Act of 1957').
(2.) For disposal of present set of revision petitions, the facts illustratively are taken from Sky Media (P) Ltd. vs. Asstt.Commissioner, Commercial Taxes, Circle 'A', Jodhpur. The Assessing Authority in the present cases for the assessment period September 2006 passed an impugned assessment order dated 25/6/2009 imposing the entertainment tax of Rs. 7,49,900/- @ Rs.20/- per subscriber for 37495 subscribers and interest on such entertainment tax for the delay in payment of the same at Rs.4,86,187/- totalling to Rs.12,36,087/-. The assessing authority held that in view of the amended definitions and charging provisions contained in Section 4AA of the Act of 1957, the proprietor of the Cable TV Network providing cable service shall also be liable to pay the entertainment tax at the rate not exceeding Rs.600/- per subscriber every year and at such rates the State Government may notify from time to time in the official Gazette and since according to the Assessing Authority in view of the latest Supreme Court decision available at that time in the case of State of State of West Bengal vs. M/s Purvi Communication & Ors., 2005 3 SCC 711, the assessee M/s Sky Media Pvt. Ltd., a Multi System Operator (MSO) fell within the said definition of 'Proprietor' providing the satellite signals to the cable operators, who in turn transmit such signals to the ultimate viewers/consumers through their set top boxes, therefore, the assessee company was liable to pay the entertainment tax under the amended provisions of the law and in view of the aforesaid Supreme Court decision and hence the said assessment order was framed.
(3.) The first appeal filed by the assessee before the Deputy Commissioner (Appeals), however, came to be allowed on 24/2/2011 and the learned first appellate authority held that the assessee MSO was not the last provider of the entertainment to the subscribers or consumers but it provides satellite signals to the cable operators, who in turn transmit the signals to the viewers/subscribers and, therefore, the assessee would not fall within the charging provision of the said amended law and, therefore, levy of tax as well as interest was liable to be set aside.;