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High Court directs constitution of expert committee to examine grievance of Adlabs Entertainment Ltd.

Shanti Prime Publication Pvt. Ltd.
Entertainment tax — In the instant case, The Assessee-company, set up a theme park and a water park. As part of State Govt. policy, it was offered incentives such as waiver of entertainment tax, since the Assessee was heavily investing capital. Moreover, such waiver gave an advantage to the Assessee over other entities in the same line of business. Upon implementation of GST, entertainment tax was subsumed, due to which the Assessee lost the incentive of waiver of such tax. Further, it became liable to pay GST @ 18%, at par with others. The Assessee claimed that its business became unviable & was unable to return borrowed funds, while also failing to recover its capital investment.
Held that— The issue warrants examination by the Government. Chief Secretary of State Govt. directed to constitute committee comprising of Principal Secretary of Finance and the Secretary of Tourism. Assessee be permitted to make representations before it. Recommendations of committee be presented before this court on next date of hearing, i.e., Feb 21, 2019. Adlabs Entertainment Limited Vs. Union of India [2018] 7 TAXLOK.COM 040 (Bombay)