MP High Court Directs Indore Municipal Corporation To Release Musical Instruments Seized From Singer Honey Singh's Concert Over Organiser's Tax Liability

A single judge bench of Justice Subodh Abhyankar observed, “Having considered the rival submissions and on perusal of the documents, under the facts and circumstances, this Court is inclined to direct to the respondents/municipal corporation to release the musical instruments seized on 9.3.2025, immediately, during the course of the day only, on an undertaking given by the authorised officer of the petitioner that all the tax liabilities shall be fulfilled as and when they are finalized.”

The present petition was been filed against the demand notice issued by the Indore Municipal Corporation/respondent no. 2 whereby, the petitioner has been directed to deposit Rs 50 lakh towards entertainment tax with a further observation that if the amount is found to be less than 50 lakhs it shall be returned to the petitioner.

The counsel for the petitioner submitted that the petitioner has been sponsoring the musical event of Singer Honey Singh, pan India, and the next destination is at Pune where the event is to take place on March 14. However, the Municipal Corporation, Indore has seized all the musical instruments, sound systems and other instruments of the Sound.com Private Ltd, an associate of the petitioner, who has also filed W.P. No. 9488/2025.

The counsel informed the Court that the petitioner had entered into an agreement with Ojas entertainment and Ojas entertainment had entered into an agreement with Sound.com Pvt. Ltd, whose goods have been seized. Thus, all the three parties are connected to each other and are responsible for the event to be held at Pune, Mumbai, Delhi, Lucknow, Ahmedabad, Bengaluru, Chandigarh, Jaipur and Kolkatta and if the equipment are not released immediately, not only heavy losses shall be incurred by the petitioner and other parties and the events shall also be cancelled, but it may also result in serious law and order situation in the aforesaid cities.

It was further submitted that so far as the impugned notice dated 8.3.2025 regarding deposition of entertainment tax, is concerned the respondents have simply relied upon the amount reflected on GST portal which is Rs.32801174.21 which is in respect of all the ten events. Whereas, as per the petitioner, the total tickets sold in Indore are worth Rs.78,47,637/- of which ten percent entertainment tax of Rs.7,84,764/- has already been deposited. It was also submitted that the petitioner's chartered accountant is in the process of preparing the audit report, and only on the basis of which it can be ascertain as to how much liability the petitioner shall incur.

Thus, Court directed to the respondents/municipal corporation to release the musical instruments seized on 9.3.2025 on an undertaking given by the authorised officer of the petitioner that all the tax liabilities shall be fulfilled as and when they are finalized.

The Court also directed each of the petitioner in W.P. No. 9491/2025 and W.P. No. 9488/2025 (Sound.Com Pvt. Ltd. Through Authorised Signatory Binda Prasad vs. The State Of Madhya Pradesh) to deposit an amount of Rs. 5,00,000/- each (Rs. Five Lakhs only) with the respondent Municipal Corporation, Indore within three working days.

The matter is listed for further hearing on April 25.

Case Title: T.V. Today Network Limited Through Its Authorized Representative Vs The State Of Madhya Pradesh And Others, WP No. 9491 of 2025

Counsel for Petitioner: Adv. Jagdish Baheti along with Adv. Prabuddha Singh, Adv. Mohit Matta

Counsel for Respondent: Adv. Shashank Shrivastava

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