HC orders release of instruments seized from Honey Singh show organisers

Indore: The Indore bench of the Madhya Pradesh high court on Wednesday asked Indore Municipal Corporation (IMC) to release musical instruments seized from organisers of the Honey Singh show. The instruments were seized against an entertainment tax of around Rs50 lakh claimed to be due towards the civic body.

Justice Subodh Abhyankar, however, clubbed another petition regarding entertainment tax with the petition filed by TV Today Network Ltd and asked both the petitioners to pay Rs 5 lakh to the IMC in three days, while listing the matter on April 25.

The petitioners challenged a demand notice by IMC dated March 8, a day before the Honey Singh concert, wherein the petitioner was directed to deposit Rs 50 lakh towards entertainment tax. If the amount is found less, it will be returned to the petitioner, the IMC notice said.

The petitioners' counsel submitted that the company is sponsoring the musical event of singer Yo Yo Honey Singh, pan India, and the next destination is Pune, where the event is to take place on Friday. IMC seized all the musical instruments, sound systems, and other instruments of Sound.com Private Ltd, an associate of the petitioner, who also filed the second petition.

The petitioner also entered into an agreement with Ojas Entertainment, and Ojas Entertainment entered into an agreement with Sound.com Pvt. Ltd, whose goods were seized. The petitioner submitted that all three parties are connected to each other and are responsible for the event to be held in Pune, Mumbai, Delhi, Lucknow, Ahmedabad, Bengaluru, Chandigarh, Jaipur, and Kolkata. If the equipment is not released immediately, not only will heavy losses be incurred by the petitioner and other parties, and the events will also be cancelled, but it may also result in a serious law and order situation in the aforesaid cities.

The petitioner's counsel said IMC, while issuing the notice, relied upon the amount reflected on the GST portal, which is in respect of all ten events. Whereas, as per the petitioner, the total tickets sold in Indore are worth Rs78.47 lakh, of which ten percent entertainment tax to the tune of Rs7.84 lakh has already been deposited.

The petitioner's chartered accountant was in the process of preparing the audit report, and only on the basis of which it can be ascertained how much liability the petitioner will incur. The judge observed that the court is inclined to direct the respondents/municipal corporation to release the musical instruments seized immediately during the course of the day only, on an undertaking given by the authorised officer of the petitioner that all the tax liabilities will be fulfilled as and when they are finalised.

The judge directed the petitioners to deposit Rs5 lakh each with IMC within three working days.

Indore: The Indore bench of the Madhya Pradesh high court on Wednesday asked Indore Municipal Corporation (IMC) to release musical instruments seized from organisers of the Honey Singh show. The instruments were seized against an entertainment tax of around Rs50 lakh claimed to be due towards the civic body.

Justice Subodh Abhyankar, however, clubbed another petition regarding entertainment tax with the petition filed by TV Today Network Ltd and asked both the petitioners to pay Rs 5 lakh to the IMC in three days, while listing the matter on April 25.

The petitioners challenged a demand notice by IMC dated March 8, a day before the Honey Singh concert, wherein the petitioner was directed to deposit Rs 50 lakh towards entertainment tax. If the amount is found less, it will be returned to the petitioner, the IMC notice said.

The petitioners' counsel submitted that the company is sponsoring the musical event of singer Yo Yo Honey Singh, pan India, and the next destination is Pune, where the event is to take place on Friday. IMC seized all the musical instruments, sound systems, and other instruments of Sound.com Private Ltd, an associate of the petitioner, who also filed the second petition.

The petitioner also entered into an agreement with Ojas Entertainment, and Ojas Entertainment entered into an agreement with Sound.com Pvt. Ltd, whose goods were seized. The petitioner submitted that all three parties are connected to each other and are responsible for the event to be held in Pune, Mumbai, Delhi, Lucknow, Ahmedabad, Bengaluru, Chandigarh, Jaipur, and Kolkata. If the equipment is not released immediately, not only will heavy losses be incurred by the petitioner and other parties, and the events will also be cancelled, but it may also result in a serious law and order situation in the aforesaid cities.

The petitioner's counsel said IMC, while issuing the notice, relied upon the amount reflected on the GST portal, which is in respect of all ten events. Whereas, as per the petitioner, the total tickets sold in Indore are worth Rs78.47 lakh, of which ten percent entertainment tax to the tune of Rs7.84 lakh has already been deposited.

The petitioner's chartered accountant was in the process of preparing the audit report, and only on the basis of which it can be ascertained how much liability the petitioner will incur. The judge observed that the court is inclined to direct the respondents/municipal corporation to release the musical instruments seized immediately during the course of the day only, on an undertaking given by the authorised officer of the petitioner that all the tax liabilities will be fulfilled as and when they are finalised.

The judge directed the petitioners to deposit Rs5 lakh each with IMC within three working days.