STATE OF MADHYA PRADESH AND ORS. vs HOME DECORATORS AND FINANCE (PVT.) LTD. AND ANR.

The Supreme Court held that the scheme organized by the respondents was a business proposition aimed at collecting money and evading entertainment duty under the Madhya Pradesh Entertainments Duty and Advertisement Tax Act, 1936. The Court found that the admission fee and membership subscription collected were effectively tickets for a single show, thus liable for entertainment duty. The High Court's reasoning was rejected as it failed to recognize the true nature of the scheme, leading to the quashing of the High Court's decision and upholding the notices issued by the tax authorities.