The Maharashtra government had, vide a GR (general resolution) in 2001, levied duty on the mobile charges which the club challenged. The bench also ordered the money deposited by the club with the authorities to be refunded
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Offering relief to the Royal Western India Turf Club (RWITC), a two-judge bench of the Mumbai High Court, justices KR Shriram and Milind Jadhav ruled that the state government cannot levy any duty or entertainment tax on the mobile badge fees charged by the club to racegoers who wish to carry their mobiles inside the racecourse on a race day.
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The Maharashtra government had, vide a GR (general resolution) in 2001, levied duty on the mobile charges which the club challenged. The bench also ordered the money deposited by the club with the authorities to be refunded.
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“It is not compulsory for anyone wanting to enter the racecourse to carry the mobile phone inside. If he does not carry it, he does not have to pay. If he wants to carry it, he will pay. This has nothing to do with entertainment for which he is said to be paying. The amount charged by petitioner from every person is not for admission to the race course itself, but for carrying the mobile phone during the races. Such a payment cannot be termed as payment for any purposes whatsoever connected with entertainment,” the court order said.
Senior advocate Shyam Mehta argued for the RWITC.
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