Should Golf courses pay entertainment tax like cinemas? This is the question being examined by the Punjab and Haryana Court after another appeal was filed against the Haryana Government’s notices to golf courses asking them to pay a 25 per cent entertainment duty.

Land Base India Limited, an ITC company which runs an 18-course golf course in Mewat, has through senior lawyer Arun Jaitley challenged the constitutional validity of the Punjab Entertainment Duty Act, 1955. On May 15, the Haryana Excise and Taxation Department issued a notice to Land Base India saying golf activity was covered under the definition of entertainment in the Act. The company was directed to pay Rs 4 crore as tax for the past five years.

Arguing the case in the High Court last Saturday, Jaitley termed provisions of the act as “unconstitutional and ultra vires” as it was the fundamental right of an individual to enjoy any sport of his choice. He also questioned the motive behind the Government’s move to levy the tax all of a sudden, ten years after the club started operations. The High Court in turn stayed the orders of the Haryana Government and issued a notice to the Excise and Taxation Commissioner. The next hearing is on July 4.

When contacted, Haryana Excise and Taxation Commissioner Apurva Kumar Singh said it would be inappropriate for him to comment as the matter is sub judice. “We have been asked to submit a reply and we shall duly do so by next week,” he added.

... contd.