ORAL JUDGMENT

Jitendra Jain, J. - By this petition under Article 226 of the Constitution of India, petitioner seeks to challenge an order dated 28th September 2007 by which the Appellate Authority has confirmed the demand of entertainment duty of Rs. 71,87,500/- and reduced the penalty from Rs.1,43,75,000/- to Rs. 71,87,500/-.

:Brief facts:

2. Petitioner is a company incorporated under Section 25 of the Companies Act, 1956 and engaged in the activities of promoting Indian Cinema and Television in India and Worldwide.

3. On 21st January 2006, petitioner organised 'APSARA' award function at Jamshedji Bhabha Auditorium for felicitating distinctive achievements in cinema and television. The said function was organised in association with Speed Bright, Sony TV, NDTV, Hungama Events, and Reliance Communications etc.

4. Reliance Communications, vide letter dated 29th December 2005, informed Respondents that they had entered into an agreement with petitioner for sponsorship containing details of offer and monetary value in relation to the said award function. The total monetary value worked out to Rs. 4.90 crores which was attributable to Free Commercial Time on NDTV channels, Press Advertiseme