M/S Tata Sky Ltd vs State Of M.P. And Ors

The Supreme Court addressed the legality of the entertainment tax imposed by the Madhya Pradesh Government under the Madhya Pradesh Entertainment Duty and Advertisements Tax Act, 1936 on DTH broadcasting services. The Court held that DTH broadcasting is a service chargeable to service tax under the Finance Act, 1994, and thus, the demand for entertainment tax by the State is not sustainable. The judgment of the Madhya Pradesh High Court was set aside, ruling that the appellants are liable to pay service tax instead of entertainment tax.