The Madras High Court on Tuesday said that it could not appreciate entertainment tax exemption for IPL matches in Tamil Nadu.
Ordering notice to the Board of Control for Cricket in India (BCCI) and the Tamil Nadu Cricket Association (TNCA) on a public interest litigation petition, the First Bench, comprising Chief Justice M.Y. Eqbal and Justice T.S. Sivagnanam, said that prima facie there was no authority to regulate entertainment tariff nor were the organisers paying entertainment tax. Tickets were sold at exorbitant rates for Rs.25,000 and Rs.40,000.
In his petition, Vasan alias Sakthi Vasan of Valasarawakkam here stated that the Tamil Nadu government did not collect entertainment tax for the IPL matches conducted in State. Thus, the State was losing its share of revenue. The IPL, BCCI and the TNCA sold the tickets at exorbitant rates. The minimum cost of a ticket was Rs.500. The Tamil Nadu government was bound to regulate IPL matches in the State as per the Tamil Nadu Entertainment Tax Act and the Tamil Nadu Cinemas Regulation Act.
The Bench said that the grounds raised by the petitioner appeared to be well considered. The court could not appreciate tax exemption for IPL games. It directed the Government Pleader also to file a counter. The matter has been posted for further hearing on July 14.
