The Delhi government has been directed to respond to a cricket board plea challenging a notice asking it to pay entertainment tax on the money
received so far from the sponsors for the IPL and T20 matches held since 2008.
Issuing a notice to Delhi government, a bench of acting Chief Justice B D Ahmed and Justice Vibhu Bakhru sought the response by November 12 on BCCI's plea seeking quashing of the notice and subsequent proceedings against the cricket body.
The bench also stayed the government' notice till its further order.
In pursuance of the amendment in the Delhi Entertainment and Betting Tax Act, on January, 14, 2013 the government had asked BCCI to deposit the due entertainment tax on the payment received from the sponsors of advertisements during the IPL and T20 matches held at Firoz Shah Kotla stadium since 2008.
The government had also levied 15 per cent interest on the amount to be paid by the sports body.
In its plea, BCCI sought quashing of the amendment in the Delhi Entertainment and Betting Tax (DEBT) Act saying the same is unconstitutional as it has been made with retrospective effect.
"Quash all actions taken in pursuance of amendment (on October 1,2012) to the DEBT Act vide notice January 14, 2013..."
"This amendment has been made with retrospective effect from April 1, 1998. The amendment now demands that the proprietor should go back in time and collect the tax from persons who may have had sponsorship agreements with the proprietor in the past. This clearly results in an absurdity as it demands the impossible," the BCCI plea said.
In the notice, the government said that during the IPL and T20 matched held in 2012 at the stadium here, it was noticed that the logos of DLF, Citibank, Hero, Vodafone etc were displayed in the stadium.
".....Since BCCI has received payment from the sponsors for displaying advertisements, logos in the ground during the matches, thus BCCI is liable to pay the tax," the government notice had said.