Advertisement Tax can’t be Levied & Collected from Multi System Operators: HC
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- Last Updated on 30 May, 2022
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Case Details: Den Networks Ltd. v. State of Maharashtra - [2022] 138 taxmann.com 456 (Bombay)
Judiciary and Counsel Details
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- S.V. Gangapurwala & Vinay Joshi, JJ.
- Rajmani Varma & Aishwarya Ghanate for the Petitioner.
- M.M. Pabale, AGP for the Respondent.
Facts of the Case
The petitioner was carrying on the business as Multi System Operator (MSO) under which it would transmit signals of various TV channels belonging to different broadcasters to local cable operators (LCOs). The department conducted survey and in view of the survey report, the notice has been issued to the petitioner for levy of advertisement tax. It filed writ petition against the levy and demand of advertisement tax.
High Court Held
The Honorable High Court observed that advertisement tax is levied on advertisement at any place of entertainment where advertisement is exhibited for payment. In the instant case, the MSOs only transmit signals of various TV channels belonging to different broadcasters to LCOs who, in turn, retransmit signals for viewership. Since, the MSO is only transmitting signals, such an event can’t be brought under ambit of advertisement tax in terms of Advertisement Tax Act. Therefore, it was held that advertisement tax can’t be levied and collected from MSOs and notice was liable to be set aside.
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