Cable operators challenge Government Resolution against taxes on STB’s in High Court

In Nagpur, two major cable operators UCN and In-Cable Network approached the Nagpur bench of Bombay high court challenging Government Resolutions (GR) of February 7, March 7 and an additional collector's order of June 7 regarding entertainment duty and taxes on the distribution of set top boxes.

The petitioners claim the GRs have burdened the cable operators by levying entire responsibility of paying entertainment tax on distribution of set top boxes.

A division bench comprising Justice Bhushan Dharmadhikari and Justice Atul Chandurkar on Monday issued notices to Maharashtra revenue secretary, collector, additional collector and the tehsildar, asking them to reply within two weeks.

Nagpur comes in the second phase of mandatory digitalisation that was completed on 31 March 2013. There were 38 such cities having a millions plus population in this phase.

With this amendment, cable operators are required to pay tax dues up to May 10 and on the 10th day of each month onwards. 

The additional collector on June 10 asked UCN to pay Rs1.17 crore for the period up to May 10, and issued another notice on July 10 to pay dues of Rs3.56 crore as arrears of land revenue. He also asked In-Cable to pay Rs. 59.39 lakh towards the tax dues.

According to the petitioners, the state government has no authority to impose and recover entertainment duty or taxes from cable operators by issuing GRs.

Source: http://cablequest.org/news/cable-news/item/2816-cable-operators-challenge-government-resolution-against-taxes-on-stb%E2%80%99s-in-high-court.htmlSource: http://cablequest.org/news/cable-news/item/2816-cable-operators-challenge-government-resolution-against-taxes-on-stb%E2%80%99s-in-high-court.html