Indian Premier League team Kings XI Punjab was issued a notice for non-payment of entertainment duty, which it owed for the first match of the fourth edition of the Indian Premier League, played at the PCA stadium in Mohali on April 13.
Also, the franchise team was not yet accorded mandatory permission for the stock, sale and service of liquor for the remaining three fixtures slated here for April 21, May 8 and 10.
After the KXIP failed to deposit the requisite entertainment duty even five days after the first match, the Excise and Taxation department issued a notice on Monday to its management asking to submit the details of the tickets sold and revenue generated and pay the requisite entertainment duty at the rate of 25 per cent of the total income.
Assistant Excise and Taxation Commissioner (AETC) Baldeep Kaur has directed the team management to deposit the levy without any further delay, failing which action under Land Revenue Act would be initiated against the organisers for recovery of entertainment duty arrears.
Confirming the development, Kaur said that the application of the KXIP seeking permission for the rest of three matches was still under consideration and a decision will be taken shortly after taking into account the terms and conditions followed during the first match.
Though the home team had initially sought permission for all the four matches to be held here but the permission was accorded only for the first game, that also on the condition that the permission for the other three would be given after checking the compliance of terms and conditions during the first match.
The franchise had paid Rs 56,32,314 on account of entertainment duty payable on the income from sale of tickets during the IPL season III for two matches played here on April 2 and 9, 2010, to procure the permission for IPL season IV matches.
However, the KXIP had been waived off almost Rs 2 crore entertainment duty, which they owed for the matches played before March 31, 2010.