logo
BookMyShow, PVR win: HC allows convenience fees on online movie tickets

BookMyShow, PVR win: HC allows convenience fees on online movie tickets

The Bombay High Court on Thursday struck down the Maharashtra government's orders prohibiting multiplexes and cinema operators from charging convenience fees on online ticket bookings. The court ruled that the state lacked legal authority under the Maharashtra Entertainment Duty (MED) Act to impose such a restriction, according to a report by Bar and Bench.
A Division Bench comprising Justice MS Sonak and Justice Jitendra Jain held that the prohibition violated Article 19(1)(g) of the Constitution, which guarantees citizens the right to practise any profession or to carry on any occupation, trade, or business.
The court observed that the government orders (GOs) — issued between April 2013 and March 2014 — had no legislative backing. 'The impugned GOs, to the extent that they prohibit collection of convenience fees on tickets booked online, violate Article 19(1)(g) of the Constitution,' the Bench noted, adding that the orders must be 'quashed and set aside'.
Court calls online booking a commercial decision
The judges clarified that opting to book tickets online was a matter of consumer choice and that charging a convenience fee for the service was a legitimate business practice.
'If the customer feels it is convenient… the respondents cannot restrain the petitioners from collecting the convenience fees, since for providing this facility… petitioners have to invest in the technology,' the court said.
The Bench cautioned against excessive government interference in commercial decisions, noting, 'If business owners are not permitted to determine the various facets of their business… economic activity would come to a grinding halt.'
BookMyShow and PVR had challenged the orders
The petitions were filed by PVR Ltd, Big Tree Entertainment (which operates BookMyShow), and other cinema operators. They argued that convenience fees were a commercial service charge, covering costs like payment gateways, internet infrastructure, and customer support—not subject to the MED Act.
The Maharashtra government contended that such charges were not permitted under the MED Act and invoked Article 162 of the Constitution to defend its executive orders. It claimed that the convenience fee amounted to an excess charge not factored into the entertainment tax structure.
Rejecting this argument, the court said that executive powers under Article 162 cannot function in a legislative vacuum. It underscored that there was no provision in the MED Act empowering the government to prohibit the collection of such fees.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Centre pegs 9.4% growth in FY26 cess, surcharge collections at ₹5.91 lakh crore
Centre pegs 9.4% growth in FY26 cess, surcharge collections at ₹5.91 lakh crore

The Hindu

timean hour ago

  • The Hindu

Centre pegs 9.4% growth in FY26 cess, surcharge collections at ₹5.91 lakh crore

The central government has budgeted to collect about ₹5.91 lakh crore from cess and surcharge in the current fiscal, a 9.43% growth over the collections in FY25, Parliament was informed on Tuesday (July 29, 2025). As per data shared by the government in the Rajya Sabha, the Centre has budgeted to collect about ₹4.18 lakh crore from cess and ₹1.72 lakh crore from surcharge in FY26. This is higher than FY25 cess and surcharge collection of ₹3.87 lakh crore and ₹1.53 lakh crore, respectively. Read:Parliament Monsoon session Day 7 LIVE In a written reply to a question in the House, Minister of State for Finance Pankaj Chaudhary said cess and surcharge are levied by the central government for the purposes of the Union under Article 271 of the Constitution. "The proceeds of such surcharge and cess go towards meeting certain specific needs such as financing of Centrally Sponsored Schemes. The benefits of such expenditure also percolate to States," he said. Replying to a separate question in the House, Finance Minister Nirmala Sitharaman said the government collected ₹83,071 crore in 2024-25 by levying health and education cess, while it spent ₹87,199 crore from the kitty. Giving details of the amount of health and education cess collected from income tax payers in addition to income tax during the last three years, Ms. Sitharaman said in 2023-24 and 2022-23 the government collected ₹69,891 crore and ₹60,616 crore, respectively from the cess. During FY24 and FY23, spendings from health and education cess kitty stood at about ₹80,010 crore and ₹70,589 crore, respectively. Gross tax revenue collected by the Centre forms part of the divisible pool and distributed between the Centre and states. Collection from surcharges and cess do not form part of the divisible pool and are hence not shared with States. Currently, 8 different cesses are in operation. These are agriculture infrastructure, development cess, cess on crude oil, cess on exports, GST compensation cess, health and education cess, national calamity contingent duty and infrastructure cess. Surcharges are levied on corporate tax, income tax, and social welfare surcharge under Customs. States, especially those ruled by Opposition parties, have been making a case for including cess collection in the divisible pool. Currently, the Centre devolves 41% of the taxes collected to States.

Quit sugar but still have high blood sugar: Quit sugar but still have high blood sugar? These hidden triggers might shock you
Quit sugar but still have high blood sugar: Quit sugar but still have high blood sugar? These hidden triggers might shock you

Time of India

timean hour ago

  • Time of India

Quit sugar but still have high blood sugar: Quit sugar but still have high blood sugar? These hidden triggers might shock you

The Supreme Court will review its May 2 judgment regarding Bhushan Power and Steel (BPSL) liquidation, hearing petitions from JSW Steel and lenders on July 31. JSW and lenders argue that JSW's Rs 19,350-crore resolution plan, implemented in 2021, revitalized BPSL, increasing its operational capacity and sales, and contributing significantly to the exchequer. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Supreme Court will hear on Thursday, July 31, petitions filed by JSW Steel and lenders of bankrupt Bhushan Power and Steel against its May 2 judgment that ordered liquidation of the review petitions will be heard by a bench of Chief Justice of India B.R. Gavai and Justice Satish Chandra Sharma at 1:55 pm. JSW Steel and BPSL lenders had approached the Supreme Court seeking review of its judgment that scrapped the former's acquisition of BPSL after four years on the grounds that the resolution plan was 'illegal' and 'in gross violation' of the Insolvency and Bankruptcy Code (IBC).It had also directed the NCLT to initiate liquidation proceedings against BPSL, a decision that was later halted till the SC decided the JSW's seeking review of the May verdict, both JSW Steel and the lenders, including PNB and SBI , have told the Supreme Court that the former's Rs 19,350-crore resolution plan was implemented in March 2021 to the benefit of all stakeholders and the liquidation would have adverse ramifications on BPSL, which was operating as a viable and a going concern since it was said it has transformed the debt-laden firm's financial health and now its operational capacity has almost doubled from 2.3 MTPA in 2017 to 4.5 MTPA in 2025, sales have increased by almost three times from Rs 8,701 crore in FY 2017 to Rs 25,973 crore in FY 2025 and exports have resumed with an annual average of Rs 2976 crore in the last four BPSL had contributed Rs 16,900 crore in taxes to the exchequer. A capital investment of Rs 5788 crore had been made by JSW in BPSL since 2021, the review petition added.

GST collection has clocked double digit growth in April-June quarter: Minister
GST collection has clocked double digit growth in April-June quarter: Minister

Hans India

time2 hours ago

  • Hans India

GST collection has clocked double digit growth in April-June quarter: Minister

New Delhi: The average monthly net GST collection has risen by a robust 10.7 per cent to Rs 1,80,774 crore in the first quarter (April-June) of the current FY 2025-26, compared to the average monthly net GST collection of Rs 1,63,319 crore in the same quarter of the previous year, Minister of State for Finance Pankaj Chaudhary informed the Parliament on Tuesday. A number of measures have been taken by the government on the recommendations of the GST Council for the benefit of the small business sector, the minister said in a written reply to a question in the Rajya Sabha. These steps include exempting small and medium enterprises from the need to obtain GST registration if the persons involved in intra-state taxable supply of goods, if their aggregate turnover in a financial year does not exceed Rs 40 lakh (Rs 20 lakh for certain special category states). Similarly, persons involved in intra-state or inter-state taxable supply of services also need not go for GST registration, if their aggregate turnover in a financial year does not exceed Rs 20 lakh (Rs 10 lakh for certain special category states) The composition levy scheme in GST is an alternative, simple method of levying tax designed for small and medium taxpayers whose turnover is up to the prescribed limit. A uniform rate of tax @1 per cent (0.5 per cent under the CGST Act and 0.5 per cent under the respective SGST Act) is payable on supplies by traders of goods and manufacturers of goods, and 2.5 per cent under each Act for supplies by restaurants. All eligible registered persons with an annual turnover up to Rs 5 crore in the preceding financial year may opt for filing of quarterly returns with monthly payment of tax. The minister further stated that a series of administrative measures, including fiscal and trade policy, have been taken to control inflation and mitigate its impact. These include the augmentation of buffer stocks for essential food items and strategic sales of procured grains in the open market to increase supply and bring down prices. Besides, facilitation of imports and export curbs during periods of short supply, and implementation of stock limits to push more supplies of select commodities into the market are other steps that have been taken by the government to control inflation, the minister added.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store