Aspect Theory and Doctrine of pith and substance – in light of recent judgment of Supreme Court on entertainment tax vs service tax
Aspect Theory and Doctrine of pith and substance – in light of recent judgment of Supreme Court on entertainment tax vs service tax Background : Issue for consideration before Hon’ble Supreme Court in the matter of State of Kerala & Anr . Vs Asianet Satellite Communications Ltd. & Ors. 2025 INSC 757 was whether Assessee is liable to pay “entertainment tax” under the provisions of respective State enactments which are relatable to Entry 62 – List II of the Seventh Schedule of the Constitution of India AND are also liable to pay service tax under the provisions of Finance Act as a provider of a taxable service namely broadcasting services within the scope and ambit of Enry 97 of List I of the Seventh Schedule of the Constitution of India. In simple words, Supreme Court was analysing whether on one transaction i.e. providing broadcasting services both State Government and Central Government can impose tax. One of the arguments raised by the As...