The Indore Bench of the Madhya Pradesh High Court has directed the Indore Municipal Corporation to release musical instruments and equipment seized from a concert organized for singer Honey Singh in Indore. The seizure was initially executed due to alleged non-payment of entertainment tax by the event organizers.
Presiding over the case, Justice Subodh Abhyankar noted that, given the circumstances and after reviewing the submissions, the municipal corporation should promptly return the seized items. This decision was contingent upon an undertaking from the petitioner's authorized officer, ensuring that all tax liabilities would be settled once finalized.
The dispute arose when the Indore Municipal Corporation issued a demand notice to the petitioner, instructing them to deposit ₹50 lakh as entertainment tax. The notice also mentioned that any excess amount, beyond the actual tax liability, would be refunded. The petitioner, responsible for sponsoring Honey Singh's nationwide musical tour, argued that the municipal corporation's actions were based on the total revenue from multiple events across various cities, rather than focusing solely on the Indore concert. They emphasized that the instruments belonged to Sound.com Private Ltd, an associate company, and that the equipment was essential for upcoming concerts scheduled in cities like Pune, Mumbai, and Delhi. Failure to retrieve the equipment promptly could lead to significant financial losses and potential cancellations of these events.
In its ruling, the court instructed the municipal corporation to release the seized equipment immediately, based on the petitioner's commitment to address all tax obligations once determined. Additionally, both the petitioner and Sound.com Pvt. Ltd. were directed to deposit ₹5 lakh each with the Indore Municipal Corporation within three working days. The court has scheduled the next hearing for April 25 to further assess the matter.
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