SC moved to put Oct 26-27 Formula One event on hold for tax default

The Supreme Court was moved on Thursday seeking to put on hold the Formula One event scheduled to be held on Saturday and Sunday at Greater Noida's Buddh International Circuit following an alleged controversy over entertainment tax dues.

As counsel for petitioner Amit Kumar, who moved the public interest litigation (PIL), mentioned the matter before the court of Chief Justice P. Sathasivam, the court said it will hear the matter on Friday.

The PIL contended that the organisers of the event have not fully deposited the dues of the entertainment tax of the event organised in 2011 and subsequently in 2012. It said that since F1 sports was elitist in nature, it did not deserve an entertainment tax exemption.

The Uttar Pradesh government too moved the Supreme Court earlier this week seeking the withdrawal of entertainment tax exemption that was granted to organisers of the F1 event by the earlier Mayawati government.

Jaypee Sports International, which had laid the F1 racing track in Greater Noida - around 50 km from New Delhi - had held the F1 race for the first time in the country in 2011. This year is the third version of the sporting event.

At the time too, Amit Kumar had moved the apex court challenging the entertainment tax exemption to the F1 racing event by the then Mayawati government.

The court by its October 21, 2011, order had directed Jaypee to deposit in a separate bank account the entertainment tax, for which it was given exemption by the Uttar Pradesh government.

The Uttar Pradesh government had granted the exemption under the Section 3 of the Uttar Pradesh Betting and Entertainment Tax Act.

The petitioner has claimed that the tax amount that the organizers of the sporting event were supposed to deposit in a separate bank account was not fully deposited.