HOME DECORATORS AND FINANCE PVT LTD Vs. STATE OF M P

JUDGEMENT

(1.) THE petitioners have, by this petition under Article 226 of the Constitution, challenged the levy of entertainment duty, and the recovery proceedings initiated by the District Excise Authorities, Jabalpur, for two performances named as "mahinder Kapoor Nite" organised by petitioner No. 2 on behalf of petitioner No. 1 Company, on the 7th and 8th july, 1974.

(2.) THE petitioner No. 1 is a limited Company registered and incorporated under the Companies Act, 1956, in the name of Home Decorators and Finance Private Limited, Jabalpur. The petitioner No. 2 is the Managing Director of the said Company. The petitioner Company has organised a scheme for groups of members with a view to encourage saving and to give other benefits to the members. A new Group has been formed by the said company, known as "nav-Nirman Group". According to the rules and regulations of the said Group, a member is admitted to this Group on payment of rs. 2/- as admission fee (not refundable) and Rs. 10/- as membership subscription (refundable after ten years ). The scheme provides for distribution of prizes by drawing lucky numbers, periodically.

(3.) THE case of the petitioners is that in order to popularise the scheme, the Company had invited artists from outside for giving performance before the members of the Group only. Accordingly, two performances were held on the 7th and 8th July 1974, in the Manas Bhawan Hall, Wright Town, Jabalpur. Admission to the said performances was given to the members of the Group and some important persons who were invited for the inaguration without accepting any payment from them. It is, therefore, urged that the provisions of the Madhya Pradesh Entertainments Duty Act, 1936 (hereinafter called as the Act) and the rules thereunder were not applicable to the aforesaid performances.