E-Paper
Maharashtra waives entertainment duty of ₹3.40 crore for 1996 Michael Jackson concert
The state cabinet on Wednesday decided to waive off entertainment duty worth ₹3.40 crore and release the amount to the organisers Wizcraft Entertainment, against
The state cabinet on Wednesday decided to waive off entertainment duty worth ₹3.40 crore and release the amount to the organisers Wizcraft Entertainment, against a concert of late pop artist Micheal Jackson organised in Mumbai around 24 years ago.
This is the second time the state government is making the decision, as its previous move was struck down by the Bombay high court (HC) in 2011, and the waiver amount had to be deposited in the court’s treasury. The court had further asked the state government to reconsider its decision in eight weeks.
On November 1, 1996, Raj Thackeray-led Shiv Udyog Sena (SUS), the Shiv Sena wing created for the generation of jobs, had organised a Michael Jackson concert in Mumbai. The state government-led Shiv Sena had waived the entertainment duty worth ₹3.40 crore for the organisers, on the grounds that the profits would be used for charity.
“Following the Bombay high court (HC) order on April 13, 2011, the state government revisited its decision taken under section 6(3) of the Maharashtra Entertainment Duty Act, 1923. The Act empowers the state government with discretionary powers to grant a waiver. Using them, the state cabinet on Wednesday decided to waive off the entertainment duty, and interest amount levied on the pop concert in 1996,” a statement by the chief minister’s (CM) office stated.
The proposal came for discussion before the cabinet headed by CM and Sena chief Uddhav Thackeray, 24 years after the state decision. His estranged cousin Raj Thackeray had formed his own political outfit — Maharashtra Navnirman Sena (MNS) in 2006.
In April 2011, a division bench of the HC had slammed the state for “non-application of mind” and set aside its order for exemption from the entertainment duty. “We have taken an opinion from the law and judiciary department, which states that the waiver was granted according to the law. The organisers too have requested the state government to release the amount,” said an official from the revenue department.
The Mumbai Grahak Panchayat (MGP) that had challenged the waiver in the HC has objected to the decision, terming it as untenable. They may consider challenging it again in the court of law, said advocate Shirish Deshpande, chairman MGP. “As soon as we came to know a proposal for the same is coming for discussion before the state cabinet, we have shot an urgent letter to the CM, requesting him not to take the decision. We have asked him to use the amount through the CM Relief Fund for those affected by Covid-19,” said Deshpande.
“Our main objection is that Wizcraft is an event management firm, and the beneficiary was supposed to be Shiv Udyog Sena, which no longer exists. How can Wizcraft claim the waiver on behalf of them? This is untenable. Surprisingly, the decision came even after us submitting an elaborative presentation to the revenue secretary in 2018, during a hearing in the matter,” Deshpande added.
