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PETITIONER: STANDARD GAMES ETC.

       Vs.

RESPONDENT: STATE OF U.P. & ORS. ETC.

DATE OF JUDGMENT:       10/04/1996

BENCH: RAMASWAMY, K. BENCH: RAMASWAMY, K. BHARUCHA S.P. (J) PARIPOORNAN, K.S.(J)

CITATION:  1996 SCC  (4) 467        JT 1996 (5)   624  1996 SCALE  (4)463

ACT:

HEADNOTE:

JUDGMENT:                             WITH                CIVIL APPEAL NO. 3322 OF 1996                             AND                CIVIL APPEAL NOS. 7749 OF 1996          (Arising out of SLP (C) No. 5560 of 1984)                          O R D E R      Leave granted in SLP (C) No.5560/84.      The admitted facts are that the appellant had installed the video game consisting of a machine with a display screen which is activated only by inserting a coin in the slot made in the  machine. Immediately  thereon, the  screen is lit up and the  game commences.  The question is : whether it is an entertainment within  the meaning  of Section  2(a) of  U.P. Entertainment and  Betting Act. 1979 (for short, the ’Act’)? The appellant’s  own case  is that the operator gets nothing in return  other than the pleasure he derives or enjoys from exercising  or  building  up  his  skill  in  operating  the machine. The  Act defines  "admission" under  Section  2(a). Section   2(g)   defines   "entertainment".   Section   2(1) (iii),(iv)  and  (v)  in  particular  defines  "Payment  for admission" with  wide language.  Notification dated July 24, 1981 was  issued by  the State  exercising the  power  under Sections 3(1)  and 4(1) of the  Act prescribing the rates of admission.      Admittedly, since  there  is  no  enumeration  in  this regard  for   the  video   game,  clause  (v)  of  the  said notification  imposes   30%  of   the   admission   fee   as entertainment tax.  The controversy  raised in  this case is squarely covered  by the  decision of  this Court  in  Geeta Enterprises &  Ors. vs.  State of  U.P. & Ors. [(1983) 3 SCR 812]. This Court has considered the above provisions and had held that  charge of  inserting the  coin was  realised only from  those who wanted to operate the video game at the rate of 50  paise. For  a slot  lasting upto  30 seconds  and  it

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amounts to  entertainment within the meaning of Section 2(g) of the  Act. Therefore, video games is exigible to entertain tax. We, therefore, hold that the appellant is liable to pay the entertainment  tax. We do not find any illegality in the view taken by the High Court warranting interference.      The appeals are accordingly dismissed. No costs.