Cable T.V. Operators are liable to pay entertainment tax under the provisions of the U.P. Entertainment and Betting Tax Act, 1979.

A large number of writ petitions have been filed by Cable T. V. Operators challenging the notices issued by the authorities for payment of entertainment tax under the provisions of U. P. Entertainment and Betting Tax Act, 1979. Four such petitions in which leading arguments have been advanced are being disposed of by a common order which shall also decide all other cases of this bunch of writ petitions.

2. The case of the petitioners, in brief, is that many man made Satel lites have been launched by various countries, corporations and other agencies which have been put into or hit around the earth and they are packed with variety of instruments and equipments. Some of these Satellites are encircling the globe and moving with it at the same speed and in the same direction in geo-stationary orbit positioned in the outer space about 35000 Km above the surface of earth. They are being used extensively for transmitting sound and picture to the earth in the form of Wireless Signals, The Signals emitted and sprayed by such Satellites can be directly received and collected on an appro priately designed dish-shaped receptacle known as Dish-Antenna which is aligned to face the satellite in the direct line of vision. The signals so received when processed through a series of electronic equipments, can be fed to a Television set by means of a conducting metal wire to recreate audio visual effect on the Television Screen. The Dish-Antenna can be installed anywhere but has to be aligned to any of the satellites available in the direct line of vision. The programmes which are broadcast be State run Doordarshan are also transmitted through Satellites which have been projected in the orbit by Indian Space Research Organisation. Such programmes are tracked in diffe rent cities and then relayed through transmitters placed on high rise towers commonly known as T. V. Towers. These programmes can be viewed on Television sets within a limited area by putting a small roof-top/indoor antenna made of suitably designed small hollow metal tubes. There are other Doordarshan programmes known as D. D. Metro which have to be tracked and picked up by users directly from the satellites by using a dish-antenna, However, some corporations and private organisations like B. B. C. , Star T. V. , M. T. V. and Zee T. V. are operating from outside India and beam their; pro grammes through satellites. These programmes cannot be directly received by T. V. sets. The petitioners have installed dish-antennas which receive and collect the signals from the satellites and these signals are then processed and amplified in the control rooms of the petitioners and are then transmitted through special cables to the Television sets of the subscriber who pay a fixed monthly amount as fee for getting this service. In this manner a subscriber is able to view programmes broadcast by B. B. C. , Star T. V. , M. T. V. and Zee T. V. etc. The entire set up is generally called cable T. V. Net work. The petitioners claim that the nature of the activity carried on by them does not fall within the scope of cinema" and "cinematograph" either under the Cinematograph Act or U. P. Cinema (Regulations) Act, 1955 as they do not exhibit moving pictures in public. The Assistant Commissioner. Entertain ment Tax issued notices to the petitioners to pay entertainment tax at the rate of 30% of subscription charges received by them from their subscribers. The petitioners further contend that the service provided by them does not came within the ambit of U. P. Entertainment and Betting Tax Act and consequent ly the demand of entertainment tax from them is without any authority of law. The stand of the State on the other hand, however, is that the petitioners are carrying on a business which enables their subscribers to view a variety of programmes broadcast by different corporations from India and outside India, on their Television sets in their own residence and get entertainment for which