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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 23^RD DAY OF JULY, 2021

PRESENT

THE HON'BLE MR. JUSTICE SATISH CHANDRA SHARMA

AND

THE HON'BLE MR. JUSTICE NATARAJ RANGASWAMY

STRP NO.294/2018

C/W

STRP NO.7/2020

STRP NO.294/2018

BETWEEN:

M/S MANIPAL ACADEMY

OF HIGHER EDUCATION,

MADHAV NAGAR,

MANIPAL, UDUPI TALUK & DIST.

REPRESENTED BY ITS REGISTRAR,

DR. NARAYANA SABHAHIT

&PETITIONER

(BY SRI G SHIVDASS, SENIOR COUNSEL

A/W SRI MOHAN MAIYA G L, ADVOCATE)

AND:

1.

THE STATE OF KARNATAKA,

REPRESENTED BY THE

SECRETARY, FINANCE DEPARTMENT,

VIDHANA SOUDHA, BENGALURU 560 001.

2.

THE JOINT COMMISSIONER

OF COMMERCIAL TAXES (APPEALS),

MANGALORE DIVISION, MANGALORE.

3.

ENTERTAINMENT TAX 3 OFFICER,

LGSTO 3 280, UDUPI.

& RESPONDENTS

(BY SRI JEEVAN J NEERALGI, ADVOCATE)

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THIS STRP IS FILED UNDER SECTION 8-F OF THE KARNATAKA

ENTERTAINMENTS ACT, 1958, AGAINST THE JUDGMENT AND ORDER

DATED 27.8.2018 PASSED IN STA NO.53 TO 55/2017 ON THE FILE OF

THE KARNTAKA APPELLATE TRIBUNAL AT BENGALURU, DISMISSING

THE APPEAL AND UPHOLDING TH ORDER DATED 24.11.2016 PASSED

IN KET/AP NO.1 TO 3/2014-15 ON THE FILE OF THE JOINT

COMMISSIONER OF COMMERCIAL TAXES (APPEALS-5), MANGALURU,

AND THE ASSESSMENT ORDER DATED 18.6.2014 PASSED UNDER SEC.

4-F OF THE KET ACT, ON THE FILE OF ENTERTAINMENT TAX OFFICER,

LYO-280, UDUPI FOR THE TAX PERIOD 2010-11, 2011-12 AND 2012-

13.

STRP NO.7/2020

BETWEEN:

M/S MANIPAL ACADEMY

OF HIGHER EDUCATION,

MADHAV NAGAR,

MANIPAL, UDUPI TALUK & DIST. 576104

REPRESENTED BY ITS REGISTRAR,

DR. NARAYANA SABHAHIT

&PETITIONER

(BY SRI G SHIVDASS, SENIOR COUNSEL

A/W SRI MOHAN MAIYA G L, ADVOCATE)

AND:

1.

THE JOINT COMMISSIONER

OF COMMERCIAL TAXES (APPEALS),

MANGALORE DIVISION,

MANGALORE 575 001

2.

ENTERTAINMENT TAX 3 OFFICER,

LGSTO 3 280, UDUPI.

& RESPONDENTS

(BY SRI JEEVAN J NEERALGI, ADVOCATE)

THIS STRP IS FILED UNDER SECTION 8-F OF THE KARNATAKA

ENTERTAINMENTS ACT, 1958, AGAINST THE JUDGMENT AND ORDER

DATED 16.9.2019 PASSED IN STA NO.248 TO 252/2017 ON THE FILE

OF THE KARNTAKA APPELLATE TRIBUNAL AT BENGALURU, DISMISSING

THE APPEAL AND UPHOLDING THE ORDER DATED 19.3.2018 PASSED

IN KET/AP NO.1 TO 5/2017-18 ON THE FILE OF THE JOINT

COMMISSIONER OF COMMERCIAL TAXES (APPEALS-5), DISMISSING

THE APPEAL AND ALSO THE ASSESSMENT ORDER DATED 23.12.2017

PASSED FOR THE YEARS 2012-13 (AUGUST 2012 to MARCH 2013),

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2013-14, 2014-15, 2015-16 AND 2016-17 (APRIL 2016 TO NOVEMBER

2016) BY THE ENTERTAINMENT TAX OFFICER, UDUPI.

THESE STRPs COMING ON FOR FINAL HEARING ON 02.07.2021

AND HAVING BEEN HEARD AND RESERVED FOR ORDERS, THIS DAY

SATISH CHANDRA SHARMA J. PRONOUNCED THE FOLLOWING:

ORDER

Regard being had to the similitude controversy involved in

both the cases, they were heard analogously together and a

common order is being passed.

2.

The petitions were admitted to consider the following

substantial questions of law:

In STRP No.294/2021

i.

Whether, in the facts and circumstances of the

case, the Karnataka Appellate Tribunal is right in

dismissing the STA Nos.53 to 55/2017 filed by the

petitioner, by upholding the orders of the First Appellate

Authority and the Assessing Authority, insofar as they

levy entertainment tax on the charges collected from

students by the petitioner for utilizing facilites of

MARENA?

ii.

Whether the Karnataka Appellate Tribunal is

permitted to traverse beyond the allegations made in the

Entertainment Tax Notice, which proposed to levy tax on

collections from MARENA treating the same as a

'recreation parlour' and demand was made under Section

4F of the KET Act, while the Tribunal confirms the

demand solely on the definition of 'entertainment' and

'amusement'?

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iii.

Whether the Karnataka Appellate Tribunal is correct

in holding that MARENA qualifies as a place of

entertainment and the petitioner is a 'proprietor', for the

purposes of levying entertainment tax?

iv.

Whether, in the fact