Local authorities must comply with government exemption orders under the Kerala Local Authorities Entertainments Tax Act, and cannot impose additional conditions for tax refunds.

JUDGMENT :

This Writ Petition is filed by the petitioner seeking the following reliefs:

“(i) Declare that the petitioner is entitled to get the benefit of Ext.P1 and refund of the amount levied as entertainment tax and due to them ;

(ii) Declare that the petitioner is entitled to get the amount paid as entertainment tax i.e., 50% on the sold tickets and the entire 100% tax paid for the unsold tickets along with 18% interest from April 2011 till the date of payment ;

(iii) issue a writ of mandamus or any other writ, order or direction, directing the 2^nd respondent to take urgent steps to see that the amount due under the entertainment tax exemption on the tickets sold and refund of 100% entertainment tax for the unsold tickets for the matches conducted in the year 2011 at Kochi International Stadium played by the Kochi Tuskers is refunded within a time limit fixed by this Honourable Court.

“iii(a) Call for the records leading to Order No.MOR5/3818/11 dated 03.10.2013 and quash the same by issue of a writ of certiorari or such other appropriate writ, direction or order.”

(iv) Award costs of and incidental to this application.

(v) Any other appropriate order or direction as deemed fit by this Honourable Court.”

Brief Facts

2. The petitioner is an incorporated entity which was a Consortium of multiple companies. Petitioner owned the team franchise of Kochi Tuskers Kerala, which was a franchise cricket team that played in the Indian Premier League representing the city of Kochi, Kerala. The team was one of the two new franchises added to the Indian Premier League for the 2011 season. Seven matches were played as Home Matches out of which 5 were played in Jawaharlal Nehru Stadium, Kaloor, Kochi. (Kaloor International Stadium).

3. The petitioner had negotiated for an entertainment tax exemption on the tickets to be issued for the team matches played at the Kaloor International Stadium. The 1^st respondent issued Ext.P1 order dated 05.04.2011 granting an exemption of 50% of entertainment tax as per Section 7A of the Kerala Local Authorities Entertainments Tax Act, 1961 (hereinafter referred to as “the Act of 1961”) for the matches that were to be played at Kaloor International Stadium from 9^th April 2011 to 5^th May 2011. The 2^nd respondent had agreed that the amount relating to unsold tickets and the exempted tax amount would be refunded to the petitioner. As revealed from Ext.P2 statement, the entire entertainment tax amount on the tickets was remitted by the petitioner to the 2^nd respondent in advance through the Bank even before the matches were held. After the matches were over, petitioner submitted all the relevant details including unsold stamped tickets to the 2^nd respondent for enabling the refund of the excess entertainment tax collected. Petitioner was entitled to the return of the excess amount collected as advance entertainment tax, ie, 50% of the advance entertainment tax remitted by them with respect to the sold tickets and 100% of such tax remitted for the unsold tickets of the matches conducted from 9^th April 2011 to 5^th May 2011 in Kaloor International Stadium. However, since the 2^nd respondent failed to refund the excess entertainment tax collected, the petitioner issued Exts.P4 and P5 letters dated 01.09.2011 and 13.12.2011 respectively requesting the 2^nd respondent inter alia to process the entertainment tax refund for the unsold stamped tickets of the 1^st and 2^nd matches held at Kaloor International Stadium. The 2^nd respondent then issued to the petitioner, Ext.P6 letter dated 19.07.2011 stating that though 50% exemption from entertainment tax h