Breaking Down the Supreme Court Judgment on DTH Services & Tax Dispute
The Supreme Court ruled that states have the legislative competence to levy entertainment tax on DTH services under Entry 62, List II (State List) of the Constitution, as the tax is on the "entertainment" aspect, not the broadcasting service. The Court upheld the "aspect doctrine", allowing simultaneous taxation by states (on entertainment) and the Centre (on broadcasting services under Entry 97, List I), provided the levies target distinct aspects of the same transaction. It rejected arguments of legislative overlap, emphasizing the pith and substance of state laws as valid exercises of taxing power.
Facts Of The Case:
The case involved multiple civil appeals and writ petitions challenging the constitutional validity of state laws imposing entertainment tax on Direct-to-Home (DTH) broad...