The Shiv Sena-BJP government did not apply its mind while granting tax exemption to the Michael Jackson concert in 1996, the Bombay high court said on Monday, indicating that it may order a fresh inquiry into the matter by the state government.
The division bench of justices DK Deshmukh and Anoop Mohta made this observation while conducting final hearing on the petition filed in 1996 by Mumbai Grahak Panchayat. The HC, however, reserved its order.
The concert was organised by event management company Wizcraft in aid of the Raj Thackeray-led Shiv Udyog Sena (SUS) at the Andheri Sports Club on October 30 and November 1, 1996.
The Panchayat challenged the state’s 100 per cent entertainment tax exemption to the concert, terming it a “classical show”. “Prima facie we (court) think there has been no application of mind by the applicant (Wizcraft) in applying and the granter (state government) while granting tax exemption to the concert,” the judges stated. They said the only reason exemption was granted was for “charitable purpose which it was not”.
Panchayat’s lawyer Uday Warunjikar argued that when the application was made by Wizcraft for tax exemption in favour of a charitable organisation, SUS was registered as a society. He said Wizcraft and SUS misrepresented facts to the government.
“Where is the proof that the state government conducted an inquiry before giving exemption. Just because he is King of Pop,” justice Deshmukh asked advocate general Ravi Kadam. The judges said Wizcraft knew well in advance that Jackson was visiting Mumbai.
“You make an application directly to the chamber of the minister and it was accepted within a day without conducting an inquiry. No one knew what was the nature of the concert. How can we approve such an order,” asked justice Deshmukh.
Comments