More than 24 years after a concert in Mumbai by King of Pop Michael Jackson, Maharashtra cabinet on Wednesday retrospectively upheld the entertainment tax waiver granted for it.
The program was conceptualised by the now defunct Shiv Udyog Sena — then headed by Raj Thackeray, estranged cousin of Chief Minister Uddhav Thackeray and now Maharashtra Navnirman Sena (MNS) president — and organised by Wizcraft Entertainment. The then Sena-Bharatiya Janata Party (BJP) coalition government under Manohar Joshi had granted waiver of entertainment tax stating it was a charity event.
The Mumbai Grahak Panchayat, a consumer rights organisation, had moved the high court in 1996 challenging the entertainment tax waiver. A division bench of the Bombay High Court had set aside the old order, citing “non-application of mind”, and sent the matter back to the government for reconsideration. The profit from the event, around ₹3.4 crore, had been deposited with the high court treasury as per court orders. In 2011, the high court had ruled that the state government has a right to extend waiver under section 6(3) of the Maharashtra Entertainment Duty Act. In court, Wizcraft had claimed the profit.
Wednesday’s decision, will now allow Wizcraft International to get back the amount earned as profit from the show.
(With PTI inputs)
