 "Adlabs Imagica gets relief from Bombay HC over tax benefits under GST")
Adlabs Imagica — which has theme and water parks in Maharashtra and is owned by Adlabs Entertainment — got relief from the Bombay High Court on Friday in a case relating to denial of entertainment tax incentives post GST.
Abhishek Rastogi, the petitioner’s counsel, said the court ordered that a committee be formed with representatives from the Maharashtra government and the Maharashtra Tourism Development Corporation, and that the committee come out with a report on extending entertainment tax benefits to the company. The committee will determine the methodology for extending the benefits to Adlabs Imagica
The issue relates to subsuming of entertainment tax into the goods and services tax (GST) which deprived the company of the entertainment tax incentives it was promised by the state government and the corporation.
Entertainment tax collected from visitors used to be transferred to the company to incentivise it for its investments under the older tax regime in accordance with the tourism policy of the state, 2006. The two parks were promised Rs 8 billion of incentives till 2023-2025.
Hence, the company moved the court, saying it should continue to get the benefits under the doctrine of legitimate expectation and promissory estoppel.
The doctrine of promissory estoppel allows a party to recover the benefit of a promise made even if a legal contract does not exist.
Similar cases are also being litigated in other states. Courts in Allahabad and Jodhpur have also given relief to petitioners, Rastogi said.
Abhishek Rastogi, the petitioner’s counsel, said the court ordered that a committee be formed with representatives from the Maharashtra government and the Maharashtra Tourism Development Corporation, and that the committee come out with a report on extending entertainment tax benefits to the company. The committee will determine the methodology for extending the benefits to Adlabs Imagica
The issue relates to subsuming of entertainment tax into the goods and services tax (GST) which deprived the company of the entertainment tax incentives it was promised by the state government and the corporation.
Entertainment tax collected from visitors used to be transferred to the company to incentivise it for its investments under the older tax regime in accordance with the tourism policy of the state, 2006. The two parks were promised Rs 8 billion of incentives till 2023-2025.
Hence, the company moved the court, saying it should continue to get the benefits under the doctrine of legitimate expectation and promissory estoppel.
The doctrine of promissory estoppel allows a party to recover the benefit of a promise made even if a legal contract does not exist.
Similar cases are also being litigated in other states. Courts in Allahabad and Jodhpur have also given relief to petitioners, Rastogi said.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%