STATE OF KARNATAKA Vs. ROYAL CHALLENGERS SPORTS PRIVATE LIMITED

JUDGEMENT

(1.) The Revenue has preferred these revision petitions challenging the order dated 25-8-2012 passed by the Karnataka Appellate Tribunal, Bangalore (hereinafter referred to as 'the Tribunal' for short) made in STA Nos. 1616 to 1622 of 2011, wherein the Tribunal partly allowed the appeals deleting the entertainment tax levied on Rs. 25/- and Rs. 49/- tickets and also deleting penalty levied under Section 6-A(4) of the Karnataka Entertainments Tax Act, 1958 on entertainment tax levied on Rs. 25/- and Rs. 49/- tickets. The assessee had organised DLF/IPL/2010 Cricket matches at Karnataka State Cricket Association Stadium, Bangalore on various dates and totally 7 matches were held in the Stadium. The spectators were admitted to different stands according to different denomination tickets. The subject-matter of controversy in this proceedings is tickets of Rs. 25/- and Rs. 49/- sold to KSCA as no tax is charged on such tickets. These tickets of Rs. 25/- and Rs. 49/- were pre-stamped by the Entertainment Tax Officer on depositing the requisite security amount.

(2.) The Deputy Commissioner of Commercial Taxes (Enforcement-I), Bangalore inspected the office premises of the assessee on 30-4-2010. According to him, in order to avoid/evade payment of tax, the value of the tickets were printed as Rs. 25/- and Rs. 49/- with facilities and seats were provided on par with the persons who had purchased the tickets having face value of Rs. 1,650/-. The assessment was concluded levying tax on tickets for Rs. 25/- and Rs. 49/-. Aggrieved by the said order, the assessee preferred an appeal before the Joint Commissioner of Commercial Taxes (Appeals-1), Bangalore (hereinafter referred to as 'the First Appellate Authority' for short) who dismissed the appeals upholding the order of levy of penalty by the Assessing Authority. In the appeals before the Tribunal, the appeals were partly allowed deleting the entertainment tax levied on Rs. 25/- and Rs. 49/- tickets and consequent penalty. Aggrieved by the said order, the Revenue is in these revision petitions.

(3.) The learned Government Advocate assailing the impugned order contends that though the face value of the tickets is printed as Rs. 25/- and Rs. 49/- and the facilities provided to the persons to whom these tickets were provided were extended the benefits which are extended to the persons who purchased the tickets of Rs. 1,650/-. It is a means adopted to evade tax. Therefore, the authorities were justified in levying tax on Rs. 25/- and Rs. 49/- tickets and the Tribunal committed an error in interfering with the said order.