1994 PLP 1034 (CLC)

4. The only plea of both the writ petitioners is that entertainment duty cannot be imposed under the Punjab Entertainment Duty Act, 1958 inasmuch as the Chair‑lift was not an entertainment as defined in clause (d) of section 2 of the said Act. The relevant clauses of the agreement in favour of M/s. Parks Pakistan are: "(8) That land in question shall not be used by the lessee for any purpose other. than the Chair‑lift project. If the lessee, at a later stage, wishes to add any amusement facility or entertainment project, he may negotiate with the lessor and enter into separate Agreement(s) for the purpose. Such projects will be subject to levy of normal Municipal and other taxes as applicable to similar enterprises. (9) The lessee shall charge at the rate of Rs.15 exclusive of entertainment duty, if any per passenger per a two‑way trip on the Chair‑lift. This will not be revised without the prior approval in writing of the lessor. (12) The lessee shall, upon the recommendation of the Chairman, Municipal Committee, Murree issue monthly passes to the local residents, to utilise the Chair‑lift as a means of communication. A maximum fee of rupees forty per month per one two‑way trip per day shall be charged for such permits. (20) Ordinarily, no similar will be caused to be installed by the lessor in the Municipal Area of Murree. However, if such a project is necessary the first choice for its installation will be given to the lessee.

5. Clause 2 of the Lease Agreement between Tourism Development Corporation and M/s. Redco provides, " ....the licensee (Redco Pakistan Ltd.) has moved to comply with the commitment made therein (agreement) in so far that it has undertaken the maintenance and operation. of the Chair‑lift System and support facilities for a period of 10 years .... In addition to the licensee is allowed the privilege of using, operating and managing, on its own cost and risk, the premises for the purposes of providing entertainment and allied services to the tourists and the public‑at‑large...:

6. Under clause 19, sub‑clause (o) Redco Pakistan also undertook to "comply fully with all applicable law, regulations and Ordinance". 7. `Entertainment' has been defined in clause (d) of section 2 of the Act of 1955 as including any exhibition, performance, amusement or horse‑racing to which persons are admitted on payment. In clause (f) of payment for admission is defined as: (f) "Payment for admission" includes‑‑ (i) any payment made by person who having been admitted to one part of a place of entertainment is subsequently admitted to another part thereof for admission to which a payment involving duty or additional duty is required; , (ii) any payment for seats or other accommodation in a place of entertainment; (iii) any payment for any purpose whatsoever connected with an entertainment which a person is required to make as a condition of attending or continuing to attend the entertainment in addition to the payment, if any, for admission to the entertainment;"

8. Learned counsel for the petitioners in view of the above definitions of `entertainment' and payment for admission, contended that the Chair‑lift did not constitute any exhibition, performance or amusement so could not be called an entertainment nor the public were admitted therein on payment. Support was sought from the following reports: Messrs Jabees Ltd., Karachi v. The Government of West Pakistan through Members, Board of Revenue, Lahore and 2 others (1979 CLC 784), Messrs Nishat Talkies and another v. The Director/Collector, Excise and Taxation, Karachi and another (PLD 1976 Kar. 712) and Calico Mills Ltd. v. State of Madhya Pradesh (AIR 1961 Madh. Pra. 257). On the other hand learned counsel of the respondents referred to the ordinary dictionary meaning of 'entertainment. Entertainment, as per ordinary dictionary means amusement, recreation or pas‑time. Amusement means anything that diverts the mind and pleases the mind. Recreation has the meaning of refreshment of the strength and spirits after toil and diversion while pas‑time connotes to pas‑time agreeably and in a pleasant manner. Keeping the ordinary dictionary meaning of the words in view entertainment denotes any amusement, recreation of pas‑time which diverts working of mind from ordinary channels to something different in a pleasant and pleasurable manner. As laid down in Calico Mills' case the natural import of the word entertainment is amusement and gratification of some sort. It connotes something in the nature of an entertainment. They also invited the attention of the Court to Government of West Pakistan and others v. Messrs Jabees Limited (PLD 1991 SC 870). The Supreme Court had accepted the appeal and reversed the decision of the Karachi High Court in this very case referred to above. It was settled by the Supreme Court that the definition of `Entertainment' and `payment for Admission' as given in section 2(d)(f) of the Act were not exhaustive. To put coins or a token after making payment for the same in the slot machine was concluded as admission to entertainment. Tile law on the subject has been exhaustively dealt with by the Supreme Court and development of the law in the English Courts has also been taken note of. Any .amusement/recreation which is in an organised manner, open to public and admission is on payment, falls in the definition of entertainment. There is no denying the fact that the public to the Chair‑lifts is not admitted but on payment and the ride in the lifts is rather a joy‑ride so keeping in view the definition of `entertainment' in the Act of 1958 definitely an entertainment chargeable to duty under the Act.

9. Learned counsel for M/s. Parks Pakistan Ltd. laid much stress on clause 8 of the Agreement to contend that the words "add any amusement facility of, entertainment project" clearly indicated that the Chair‑lift was not an amusement or entertainment. But he lost sight of the fact that the very next clause i.e. clause 9 mentioned that the lessee was to charge at the rate of Rs.15 exclusive of the entertainment duty if any. Even if clause 8 creates some favourable impression for the writ petitioner that would not nullify the provisions of the Statute i.e. the Act of 1958. The contention is rejected.

10. The case of Redco Pakistan is on their own pleadings without any basis. Chair‑lift System at Patriota was described as entertainment in the agreement in its favour, exemption from entertainment duty for 2 years was undertaken to be obtained by the Tourism Development Corporation and it has been admitted at the Bar that for some time entertainment duty has also been paid.

11. The upshot of the above conclusions is that the writ petitioners have no case. The petitions consequently fail and are hereby dismissed. H.B.T./P‑84/L Petitions dismissed.